Exploring the Use of Price Indices to Adjust Angler Expenditure Profiles over Time

Abstract

AbstractThis research evaluated a price‐adjusting methodology to update trip expenditure information annually for economic impact analysis. Historic expenditure profiles for nonlocal Texas anglers and nonresident (out‐of‐state) anglers were generated from 1995 angler survey data collected at Lake Fork Reservoir; these data were then adjusted over a 20‐year period using price indices produced by the U.S. Bureau of Labor Statistics. To determine whether the price adjustment methodology was appropriate for angler expenditures, a replication of the 1995 angler survey was conducted in 2015 to compare adjusted expenditures to actual expenditures. Preliminary results concluded that expenditure profiles for nonlocal and nonresident anglers were different between the two periods but also suggested that significant differences within angler groups existed between the two angler surveys, so anglers were regrouped based on trip length rather than origin of trip. Adjusted average daily expenditure total for 1‐d trips during the 1995 study (US$69.38) was similar to the average daily expenditure total of the 2015 study ($77.18), and the same conclusion was found for all item categories. For multiple‐day trips, adjusted average daily expenditure ($130.48) was similar to the average daily expenditure ($128.04) in 2015. Expenditure profiles were then combined with effort data in the IMPLAN (Impact Analysis for Planning) software model to generate estimates of economic impacts. Total economic impacts of 1‐d fishing trips to Lake Fork Reservoir were estimated to be $1.28 million and $1.43 million when using the adjusted and actual expenditure profiles, respectively. For multiple‐day trips, economic impacts were estimated to be $10.82 million and $10.80 million for the adjusted and actual expenditure profiles, respectively. Although economic impact analysis must continue to identify where trip expenditures originate, results suggest that adjusting trip expenditures over time can be done using price indices and should be conducted based on trip length regardless of origin.