This article applies a discrete-choice equilibrium model with product differentiation to study the rural tourism industry in Israel and to jointly estimate the effect of lodging and farm characteristics on consumer preferences and firms' costs. The model accounts for heterogeneity in tastes and...

The authors use a Ricardian model to test the relationship between annual net revenues and climate across Israeli farms. They find that it is important to include the amount of irrigation water available to each farm in order to measure the response of farms to climate. With irrigation water...