Translog and Cobb-Douglas analysis of tourist demand in Florida

The purpose of this study is to determine what factors could influence an economic agents' decision to travel or vacation in Florida. This study measures this decision by analyzing the state Division of Tourism estimates for visitors in light of changes in; national gross domestic product, non-aviation gasoline prices, average airfares, and exchange rates. This data was compiled on a quarterly basis form 1980 to 1993 and analyzed by employing Translog and Cobb-Douglas demand functional forms for use in regression analysis. Based upon the regression results, the Cobb-Douglas functional form best represents what has historically occurred in the real economic world and follows generally accepted micro-economic demand theory. The Cobb-Douglas techniques reveal that an economic agents' future income expectations, measured by GDP levels, has a significant influence on Florida visitor estimates and has a role in the decision to vacation in Florida.