We apply the CCE estimators to US state level quarterly data spanning the period from the first
quarter of 1993 to the first quarter of 2012. We obtain an income elasticity for Hawaii tourism demand
that is slightly greater than one, elastic demand with respect to hotel room prices, and inelastic demand
with respect to airfare. Our estimates are more plausible than those of Bonham et al. (2009)
whose pure time series model did not benefit from cross-sectional variation, and are in line with
the results of Nelson et al. (2011) who included in their model observed proxies for common factors,
such as oil prices and a non-linear time trend.