Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/171696 
Year of Publication: 
2016
Series/Report no.: 
Economics Working Paper Series No. 16/253
Publisher: 
ETH Zurich, CER-ETH - Center of Economic Research, Zurich
Abstract: 
Hurdle and zero-in ated models are the two foremost methods used to deal with excess zeros. However, their reliance on the nonparticipation assumption is a drawback when applied to recreation demand analysis because there is not a theoretical framework convincingly explaining presence of non-participants. This paper dis- cusses how latent class count models represent a theoretically consistent alternative to handle excess zeros. The theoretical model behind a latent class model does not require the non-participation assumption. Instead, excess zeros is explained as the accumulation of corner solutions from individuals belonging to different classes.
Subjects: 
Excess zeros
Latent class count models
Travel Cost Method
JEL: 
C29
Q26
Q51
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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