ESTIMATING A SYSTEM OF RECREATION DEMAND-FUNCTIONS USING A SEEMINGLY UNRELATED POISSON REGRESSION APPROACH

In this article, a seemingly unrelated Poisson regression model (SUPRE ME) is presented as an alternative to using Zellner's seemingly unrela ted regression model for estimating a system of recreation demand func tions. SUPREME provides estimates that are asymptotically more efficie nt than equation-by-equation Poisson estimates and circumvents the bia s and inconsistency problems that result when using Zellner's seemingl y unrelated regression model. Additionally, SUPREME is applied to an e mpirical problem dealing with the value of recreational boating and th e findings indicate that the SUR consumer surplus estimates are substa ntially different from those of SUPREME.