| Abstract: | We present a micro-econometric limited dependent variable model, which simultaneously explains the decision whether to go on vacation or not, the choice of destination and the decision on the level of the vacation expenditures. The model has been estimated on the basis of a cross-section of Dutch households; we find a striking difference in income elasticity between domestic vacations and vacations abroad, and a large impact of owning certain durables (such as a boat) on the choice of destination. To illustrate the potential of the model, some simulations are performed. |
