Heterogeneous Effects of Economic Hardships on Recreational Fishing Trips

Abstract

Recreational fishing is a leisure, yet sustenance providing, activity which suggests a complex relationship between the demand for the activity and economic hardship. We use random effects panel regression models and NOAA Marine Recreational Information Program data to evaluate the relationship between the demand for recreational fishing trips and economic hardships. Our results show heterogeneous effects of economic hardships on the demand for fishing trips across fishing modes and by economic indicator. In particular, unemployment rate has both current and prolonged effects on the demand for charter boat fishing trips, labor-force participation rate has current and lagged effects across private-boat and shore fishing trips, and gas prices and contractionary periods have a positive relationship with the demand for private-boat and shore fishing trips. These results highlight the heterogeneous outcomes different types of fishing will face during times of economic hardship. Understanding these impacts is important for planning purposes for business owners and natural resource managers, alike.