Application of Sample Selection Model to Double-Bounded Dichotomous Choice Contingent Valuation Studies
AbstractModeling households' behavior with the data from a contingentvaluation (CV) survey is often complicated by samplenon-response, which can cause non-response bias and sampleselection bias, leading to inconsistent parameter estimates and adistorted mean willingness-to-pay estimate. This paper reportsthe results of empirical tests for both biases using householdsurvey data in which the double-bounded dichotomous choice CVquestion involved the benefit of a tap water quality improvementpolicy in Korea. No non-response bias, but sample selection bias,is detected in the sample. To correct for sample selection bias,a sample selection model is employed. The authors also discusshow failure to correct for bias may distort aggregate benefitestimates. Copyright Kluwer Academic Publishers 2001
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 20 (2001)
Issue (Month): 2 (October)
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Web page: http://www.springerlink.com/link.asp?id=100263
contingent valuation; non-response; sample selection bias; tap water quality;
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