Opportunity Cost Of Time Research Articles

Do ethnic minorities “stretch” their time? UK household evidence on multitasking

This paper investigates the effect of ethnicity on time spent on secondary household production, work and leisure activities employing the 2000 UK Time Use Survey. We find that, unconditionally, white females manage to “stretch” their time the most by almost four additional hours per day and non-white men “stretch” their time the least. The three secondary activities most often combined with other (primary) activities in terms of time spent on them are social activities including resting, passive leisure and childcare. Regression results indicate that non-white ethnic minorities engage less in multitasking than whites, with Pakistani and Bangladeshi males spending the least time on total secondary activities. There also exists a significant ethnicity gap for secondary housework activities and for both males and females, although females in general engage more in multitasking. The effect is heterogeneous across different sub-groups. We review several potential interpretations and discuss whether these differences in behavior may relate, among other, to opportunity costs of time, different preferences and tastes of ethnic minorities, integration experience, family composition and household productivity.

Internet Use and Social Capital: The Strength of Virtual Ties

This paper aims to understand how Internet users may improve their social capital by investing in online social activities. We argue that the Internet can be a convenient and efficient means of maintaining existing social ties and/or of creating new ties. We seek to identify the determinants of online investments in social capital and the nature of the interaction with traditional forms of investment in social capital. Using a Luxembourg household survey, the econometric results reveal a significant positive impact of volunteer activities and trust (two measures of social capital) on online investments to maintain social capital, but more ambiguous results are found between online investments and face-to-face contacts with friends. By contrast, online investments to create new ties are poorly related to the Internet users' existing social capital, but depend on the opportunity cost of time.

The demand for relational goods: empirical evidence from the European Social Survey

How are happiness and the demand for relational goods and status goods related? Using cross-sectional data from the European Social Survey, this relationship is investigated for European countries. The main result is that the demand for relational goods is not reduced by high opportunity costs of time. Rather, both wage rate and income are positively related to the frequency of social contacts. In contrast to financial means, while status is more important for happiness in richer European countries than in poorer ones, social status is not decisive for the frequency of meeting friends regardless of the home country’s economic well-being. Thus, while no crowding out of relational contacts by status could be observed, relational goods are even boosted by material well-being.

Using Multi-destination ZTCM to Evaluate the Recreational Values of Cultural Sights: An Application to Jiayuguan, China

Abstract This study explained the importance of environmental protection in tourism development and illustrated the relationship between recreational resource valuation and environmental consideration. We compare different models of travel cost method and reiterates long-time existing problems of multi-destination and treats of time opportunity cost (TOC). Taking Jiayuguan’s cultural sights as an example, we establish an updated method called multidestination zonal tourism cost method to evaluate the recreational values (RVs) of selected three cultural sights. We divide trip packages of Jiayuguan’s tourists into 11 portfolios. Each portfolio can be seen as a separate commodity, and each commodity has its own demand curve. According to demand curves we can calculate consumer surplus (CS) of different portfolios of tourist destinations and later we sum up the total travel costs (including travel expenditure and TOC) and CS to come to the RVs of each portfolio. We then apply suitable proportions to calculate...

The Role of Customer Factors in Multiple Store Patronage: A Cost–Benefit Approach

This paper is concerned with the use of multiple stores by supermarket customers. It relates the number of stores patronized to a set of customer factors under a unifying theoretical framework emphasizing cost–benefit analysis. Respective hypotheses are tested in a large random sample. This study is a first attempt to empirically address the structure of multiple store patronage. It is demonstrated that multiple store patronage is affected by variables such as customer income, satisfaction, and expenditure that are suggestive of heterogeneous cost–benefit tradeoffs and opportunity costs of time. It is shown that customers are intrinsically different in the predisposition to being loyal. In this respect, store patronage is a continuum between single store loyalty and use of several different stores, on which customers vary depending on individual preferences. The empirical analysis also suggests that exclusive patronage of the favorite store arises from two observationally equivalent latent segments that differ in their inclination to remain loyal. The results yield valuable insights into the structure of store patronage and lead to important implications for retail managers. Several extensions are considered. A broad set of research questions surrounding store patronage can be considered from a cost–benefit viewpoint in the sense that consumer decisions in this area involve trading off economic resources against assortment, spatial and temporal benefits.

Internet Use and Social Capital: The Strength of Virtual Ties

This paper aims to understand how Internet users may improve their social capital by investing in online social activities. We argue that the Internet can be a convenient and efficient means of maintaining existing social ties and/or of creating new ties. We seek to identify the determinants of online investments in social capital and the nature of the interaction with traditional forms of investment in social capital. Using a Luxembourg household survey, the econometric results reveal a significant positive impact of volunteer activities and trust (two measures of social capital) on online investments to maintain social capital, but more ambiguous results are found between online investments and face-to-face contacts with friends. By contrast, online investments to create new ties are poorly related to the Internet users’ existing social capital, but depend on the opportunity cost of time.

Optimal overlapping and functional interaction in product development

Overlapping of development stages and interaction between different functions are regarded as important strategies for reducing development lead time. However, overlapping typically requires additional costs for rework and functional interaction increases communication time. This paper presents an analytical model to improve project performance by balancing the positive and negative effects of overlapping and functional interaction. We first investigate the progress of downstream development, which is essential to derive the optimal overlapping policies. We find that the downstream progress increases over time when the upstream evolution is fast or linear, but it is indefinite when the upstream evolution is slow. Then, we present optimal overlapping policies taking into account the complexity of downstream progress. The impact of different project properties, such as the dependency between development stages and the opportunity cost of time, on overlapping policies is discussed. Finally, we derive the optimal functional interaction strategy when the optimal overlapping is followed. The methodology is illustrated with a case study at a handset design company.

Investing time in health: do socioeconomically disadvantaged patients spend more or less extra time on diabetes self‐care?

Research on self-care for chronic disease has not examined time requirements. Translating Research into Action for Diabetes (TRIAD), a multi-site study of managed care patients with diabetes, is among the first to assess self-care time. To examine associations between socioeconomic position and extra time patients spend on foot care, shopping/cooking, and exercise due to diabetes. Eleven thousand nine hundred and twenty-seven patient surveys from 2000 to 2001. Bayesian two-part models were used to estimate associations of self-reported extra time spent on self-care with race/ethnicity, education, and income, controlling for demographic and clinical characteristics. Proportions of patients spending no extra time on foot care, shopping/cooking, and exercise were, respectively, 37, 52, and 31%. Extra time spent on foot care and shopping/cooking was greater among racial/ethnic minorities, less-educated and lower-income patients. For example, African-Americans were about 10 percentage points more likely to report spending extra time on foot care than whites and extra time spent was about 3 min more per day. Extra time spent on self-care was greater for socioeconomically disadvantaged patients than for advantaged patients, perhaps because their perceived opportunity cost of time is lower or they cannot afford substitutes. Our findings suggest that poorly controlled diabetes risk factors among disadvantaged populations may not be attributable to self-care practices.

Reconsidering Social Capital: A Latent Class Approach

Social capital has proven to be a useful concept, but has been ill-defined and not well-measured in the economics literature. We propose a different empirical method for measuring social capital, latent class analysis, based on the idea that social capital is an unobservable multidimensional construct. We explain and demonstrate the construction of latent classes that measure an individual's social capital using data from the General Social Survey. We then show our proposed method allows meaningfully different conclusions about the accumulation of social capital than those obtained by previous research. Specifically, we present evidence consistent with the hypothesis that higher income influences social capital accumulation because of a higher opportunity cost of time. In addition, we find evidence for complementarities in social capital accumulation within an individual's peer group.

Quick-service expenditure in Ireland: parametric vs. semiparametric analysis

The aim of this study is to identify the economic and socio-economic factors influencing Irish households' expenditure on quick-service meals, a particularly dynamic component of the foodservice industry, and to determine the extent to which these factors have changed over the course of the 1990s. Maximum likelihood estimation and semiparametric alternatives are considered with the conclusion that in this instance semiparametric techniques do not offer a viable alternative to maximum likelihood estimation of tobit models, even in the presence of heteroscedasticity and non-normality. The results revel that household income, place of residence, commuters and household size have significant and positive influences on quick-service expenditure. Older families, single households and married couples, together with homeowners, display reduced expenditure. The opportunity cost of time is positively related to quick-service expenditure, consistent with theory, while health knowledge has a negative impact on quick-service consumption.

Poverty and spatial dimensions of non-timber forest extraction

ABSTRACTConservationists promote non-timber forest products (NTFP) to simultaneously alleviate poverty and conserve ecosystems. Unfortunately, little is known about how such products actually contribute to poverty alleviation, or how various complementary policies such as green marketing campaigns or cooperative management might impact resource health and users' welfare. This paper develops a simple NTFP extraction model that focuses on spatial and labor market dimensions of use in both managed and unmanaged settings. The model contrasts patterns of spatial use, resource health, and income generation under open access and community-managed institutions. We then test the conceptual model by investigating the case of xate production in the rainforest of Chiapas, Mexico, using survey work conducted over two separate periods. The empirical investigation reveals spatial patterns and labor market outcomes predicted by the model. We find NTFP use is mainly conducted by households with low opportunity costs of time and fewer income generation opportunities.

A meta-analysis of forest recreation values in Europe

This paper presents a meta-analysis of forest recreation in Europe based on studies that have applied the travel cost method covering 26 studies in nine countries since 1979. We conduct the meta-regression with an increasing number of variables where level I includes only data available from the studies, level II aggregate socio-economic variables and level III site-specific characteristics such as diversity, fraction of open land and location. Data shows that consumer surplus varies between €0.66 per trip to €112 with a median of €4.52 per trip. Results of the model with the best overall summary indicate that the application of the individual travel cost method, inclusion of opportunity cost of time and average distance travelled lead to increasing benefits whereas the year of the study and estimations from theses and dissertations reduce welfare estimates. Including exogenous variables shows that site attributes, GDP per capita and population density play a significant role.

Effects of Norms and Opportunity Cost of Time on Household Recycling

Social and moral norms and the opportunity cost of time will affect household recycling efforts. A model is developed to describe how norms affect the recycling decision through feelings of self-respect, guilty conscience, and warm-glow, as well as respect in, and sanctions from, the community. We find that the opportunity cost of time has a significant negative effect on household recycling. All indicators of warm-glow, social, and moral norms increase household recycling efforts. We find no evidence of crowding-out, neither when recycling is perceived as mandatory, nor when economic incentives are introduced in the form of a differentiated garbage fee.

Endogenous Political Economy: On the Inevitability of Inefficiency under the Natural Resource

This paper is a first step toward a more fundamental theory of political economy outcomes. We start from the fundamentals of the economy, given by preferences and technology; further, we specify all available technologies for the control of resources — such as armed forces or bribing. We model the interaction of agents in this economy as a game and examine all its equilibria. Equilibrium allocations must be such that individuals maximize their utility and that no group of individuals has the incentive to modify those allocations by (additional) usage of the technologies for the control of resources. The generality of our approach enables us to answer the question “Is there something about the nature of a country that makes inefficient equilibria inevitable?” We illustrate our approach by applying it to the natural resource curse. The model predicts that inefficient outcomes — in the form of either conflict or a deterrence army solution — will always occur as long as the value of natural resources to capture is positive and the opportunity cost of time — which partly determines soldiers’ wages — is finite.

Deadlines and distractions

We consider a task, demanding a sequence of efforts, that must be completed by a deadline. Effort is not contractible. Agents face shocks to their opportunity cost of time and are sometimes distracted from work. We show that agents who are often distracted may outperform agents who are distracted less often. The reason is that anticipation of distractions induces agents to start earlier for precautionary reasons. Principals can increase the probability of completion, and achieve higher profits, by strategically setting “tight” deadlines, provided that the deadlines can be extended with some positive probability.

Parental Education and Parental Time with Children

This paper examines parental time allocated to the care of one's children. Using data from the recent American Time Use Surveys, we highlight some interesting cross-sectional patterns in time spent by American parents as they care for their children: we find that higher-educated parents spend more time with their children; for example, mothers with a college education or greater spend roughly 4.5 hours more per week in child care than mothers with a high school degree or less. This relationship is striking, given that higher-educated parents also spend more time working outside the home. This robust relationship holds across all subgroups examined, including both nonworking and working mothers and working fathers. It also holds across all four subcategories of child care: basic, educational, recreational, and travel related to child care. From an economic perspective, this positive education gradient in child care (and a similar positive gradient found for income) can be viewed as surprising, given that the opportunity cost of time is higher for higher-educated, high-wage adults. In sharp contrast, the amount of time allocated to home production and to leisure falls sharply as education and income rise. We conclude that child care is best modeled as being distinct from typical home production or leisure activities, and thinking about it differently suggests important questions for economists to explore. Finally, using data from a sample of 14 countries, we explore whether the same patterns holds across countries and within other countries.

Alternative treatments of the cost of time in recreational demand models: an application to whitewater kayaking in Ireland

The measurement of travel costs in recreational demand modeling has been a contentious issue for many decades. This article explores the use of a number of alternative methods of incorporating time costs in the travel cost modeling process. Travel cost values where the opportunity cost of time is excluded, where it is included as a percentage of the individual's reported wage rate and where it based on an estimated wage from a secondary data source (the European Community Household Panel) are compared and then used in a conditional logit model to estimate the demand for whitewater kayaking in Ireland. We then evaluate the effect of different treatments of the cost of travel time on the welfare impacts of a number of different management scenarios for kayaking rivers in Ireland, and find that statistically significant differences emerge.

Time and Expected Value of Sample Information Wait for No Patient

Objective The expected value of sample information (EVSI) from prospective trials has previously been modeled as the product of EVSI per patient, and the number of patients across the relevant time horizon less those “used up” in trials. However, this implicitly assumes the eligible patient population to which information from a trial can be applied across a time horizon are independent of time for trial accrual, follow-up and analysis. Methods This article demonstrates that in calculating the EVSI of a trial, the number of patients who benefit from trial information should be reduced by those treated outside as well as within the trial over the time until trial evidence is updated, including time for accrual, follow-up and analysis. Results Accounting for time is shown to reduce the eligible patient population: 1) independent of the size of trial in allowing for time of follow-up and analysis, and 2) dependent on the size of trial for time of accrual, where the patient accrual rate is less than incidence. Consequently, the EVSI and expected net gain (ENG) at any given trial size are shown to be lower when accounting for time, with lower ENG reinforced in the case of trials undertaken while delaying decisions by additional opportunity costs of time. Conclusions Appropriately accounting for time reduces the EVSI of trial design and increase opportunity costs of trials undertaken with delay, leading to lower likelihood of trialing being optimal and smaller trial designs where optimal.

Drainage water management impact on farm profitability

Summary The representative farm planning model that is used for the 2005 Purdue University Top Farmer Crop Workshop base case was extended to include managed drainage activities in order to evaluate the impact of drainage management time on farm operations. The analysis considered two alternative enterprises: rotation corn – soybeans with and without controlled drainage activities. The baseline solution assumed that controlled drainage has 10% higher average yields than free flowing drainage, one drainage control structure is needed each 20 acres, and all drainage management work was done on good field days. The results suggest that the baseline optimal solution was rotation corn-soybeans with controlled drainage where 1,500 acres were cultivated with corn following soybeans and 1,500 acres with soybeans following corn. Compared to the enterprise without controlled drainage, the annual returns to resources were 10% and 7.9% higher with and without EQIP subsidy respectively. Time opportunity cost for the managed drainage activities in each time period in the baseline solution was zero except for Dec. 6 – Apr. 21 period when its value was $10/hour and 108.69 hours of labor were hired. This was because of the controlled drainage activities (both installation and boards removal occur in this time period) that completely utilize full-time field labor and require additional hours of part-time labor to be hired. When hiring part-time labor was not available, the optimal enterprise was rotation corn-soybeans with managed drainage on 2/3 of the farm and corn-soybeans without controlled drainage on 1/3 of the farmland for a total annual contribution margin of $675,505. Increasing labor available by one more hour would increase the profits by $281.30 (Dec 6 – Apr. 21), $28.06 (Apr 22 – Apr 25), $338.18 (Apr. 26 – May 2), $229.48 (May 3 – May 9), $9 (May 10 – May 16), $28.07 (Nov. 1 – Nov 14 and Nov 15-Dec 5). In the baseline scenario the yield advantage threshold for profitability of managed drainage was 2.3% and 4.5% with and without EQIP subsidy respectively.

Estimating water demand for domestic use in rural South Africa in the absence of price information

The paper applies the travel cost method (TCM) to estimate the value that rural households in the Steelpoort sub-basin of South Africa place on river and collective tap water. While the TCM calculations are based on the opportunity cost of the time household members spend on water collection, the resulting welfare values are close in magnitude to the estimates obtained using a contingent valuation method (CVM) on the same sample. The paper shows that in the absence of price data, the TCM provides satisfactory estimates of benefits where direct estimation of demand elasticity would otherwise be impossible. According to both methods, households consuming river water attribute higher value to the resource than collective tap users. The income elasticity of the trip generating function is much higher than that of the opportunity cost of time (price), implying that household's water use behaviour would be more responsive to factors affecting household income than to price incentives. Comparing the estimated values with actual operating and maintenance cost of water provision in the study area suggests that policies promoting cost-covering water tariffs have a potential to succeed.