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Model selection for the mixed logit with Bayesian estimation

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Author Info

  • Balcombe, Kelvin
  • Chalak, Ali
  • Fraser, Iain

Abstract

In this paper, the mixed logit (ML) using Bayesian methods was employed to examine willingness-to-pay (WTP) to consume bread produced with reduced levels of pesticides so as to ameliorate environmental quality, from data generated by a choice experiment. Model comparison used the marginal likelihood, which is preferable for Bayesian model comparison and testing. Models containing constant and random parameters for a number of distributions were considered, along with models in 'preference space' and 'WTP space' as well as those allowing for misreporting. We found: strong support for the ML estimated in WTP space; little support for fixing the price coefficient a common practice advocated and adopted in the environmental economics literature; and, weak evidence for misreporting.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 57 (2009)
Issue (Month): 2 (March)
Pages: 226-237

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Handle: RePEc:eee:jeeman:v:57:y:2009:i:2:p:226-237

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Web page: http://www.elsevier.com/locate/inca/622870

Related research

Keywords: Mixed logit Willingness-to-pay Model comparison;

References

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations

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Cited by:
  1. Andersson, Henrik & Tago, Damian & Treich, Nicolas, 2014. "Pesticides and health: A review of evidence on health effects, valuation of risks, and benefit‐cost analysis," IDEI Working Papers 825, Institut d'Économie Industrielle (IDEI), Toulouse.
  2. Uchida, Hirotsugu & Onozaka, Yuko & Morita, Tamaki & Managi, Shunsuke, 2014. "Demand for ecolabeled seafood in the Japanese market: A conjoint analysis of the impact of information and interaction with other labels," Food Policy, Elsevier, vol. 44(C), pages 68-76.
  3. Balcombe, Kelvin George & Bitzios, Michael & Fraser, Iain & Haddock-Fraser, Janet, 2012. "Using Attribute Importance Rankings within Discrete Choice Experiments: an application to Valuing Bread Attributes," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134759, Agricultural Economics Society.
  4. Rouwendal, Jan & de Blaeij, Arianne & Rietveld, Piet & Verhoef, Erik, 2010. "The information content of a stated choice experiment: A new method and its application to the value of a statistical life," Transportation Research Part B: Methodological, Elsevier, vol. 44(1), pages 136-151, January.
  5. Kelvin Balcombe & Iain Fraser & Salvatore Di Falco, 2009. "Traffic Lights and Food Choice: A Choice Experiment Examining the Relationship Between Nutritional Food Labels and Price," Studies in Economics 0915, Department of Economics, University of Kent.
  6. Andersson, Henrik & Tago, Damian & Treich, Nicolas, 2014. "Pesticides and health: A review of evidence on health effects, valuation of risks, and benefit‐cost analysis," TSE Working Papers 14-477, Toulouse School of Economics (TSE).
  7. Zander, Kerstin K. & Signorello, Giovanni & De Salvo, Maria & Gandini, Gustavo & Drucker, Adam G., 2013. "Assessing the total economic value of threatened livestock breeds in Italy: Implications for conservation policy," Ecological Economics, Elsevier, vol. 93(C), pages 219-229.
  8. Hanley, Nicholas & Riera, Antoni & Torres, Cati, 2010. "How wrong can you be? Implications of incorrect utility function specification for welfare measurement in choice experiments," Stirling Economics Discussion Papers 2010-12, University of Stirling, Division of Economics.
  9. Angel Bujosa & Antoni Riera & Robert Hicks, 2010. "Combining Discrete and Continuous Representations of Preference Heterogeneity: A Latent Class Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 47(4), pages 477-493, December.
  10. Arne Hole & Julie Kolstad, 2012. "Mixed logit estimation of willingness to pay distributions: a comparison of models in preference and WTP space using data from a health-related choice experiment," Empirical Economics, Springer, vol. 42(2), pages 445-469, April.
  11. Grisolía, José M. & Longo, Alberto & Boeri, Marco & Hutchinson, George & Kee, Frank, 2013. "Trading off dietary choices, physical exercise and cardiovascular disease risks," Social Science & Medicine, Elsevier, vol. 93(C), pages 130-138.
  12. Doherty, Edel & Campbell, Danny & Hynes, Stephen, 2012. "Exploring cost heterogeneity in recreational demand," Working Papers 148832, Socio-Economic Marine Research Unit, National University of Ireland, Galway.
  13. Campbell, Danny & Doherty, Edel & Gibson, Vikki, 2011. "Choosing ‘buy none’ in food choice analysis: the role of utility balance," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108951, Agricultural Economics Society.
  14. Kelvin Balcombe & Iain Fraser, 2009. "A General Treatment of Non-Response Data From Choice Experiments Using Logit Models," Studies in Economics 0916, Department of Economics, University of Kent.

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