A Simple Method of Incorporating Income Effects into Logit and Nested-Logit Models: Theory and Application
AbstractSubstantive income effects are incorporated in a logit or nested-logit model by assuming that utility is a piece-wise linear spline function of residual income. Specific income data are not required, only income by category. Expected compensating variation is easily and accurately approximated by the difference between expected maximum utility in the proposed and initial state, multiplied by the inverse of the individual's initial marginal utility of money. This approximation is almost exact because although any policy can, in theory, cause an individual to jump income categories, for most policies this probability will be very small. Copyright 2003, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 85 (2003)
Issue (Month): 1 ()
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Mitsunobu Miyake, 2010. "Convergence theorems of willingness-to-pay and willingness-to-accept for nonmarket goods," Social Choice and Welfare, Springer, vol. 34(4), pages 549-570, April.
- Ricardo Scarpa & Mara Thiene & Francesco Marangon, 2007.
"The Value of Collective Reputation for Environmentally Friendly Production Methods: The Case of Val di Gresta,"
Working Papers in Economics
07/11, University of Waikato, Department of Economics.
- Riccardo Scarpa & Mara Thiene & Francesco Marangon, 2007. "The Value of Collective Reputation for Environmentally-Friendly Production Methods: The Case of Val di Gresta," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(1), pages 7.
- Westerberg, Vanja Holmquist & Lifran, Robert & Olsen, Søren Bøye, 2010.
"To restore or not? A valuation of social and ecological functions of the Marais des Baux wetland in Southern France,"
Elsevier, vol. 69(12), pages 2383-2393, October.
- Vanja Westerberg & Robert Lifran & Søren Bøye Olsen, 2008. "To restore or not? A valuation of social and ecological functions of the Marais des Baux wetland in Southern France," Working Papers 08-12, LAMETA, Universtiy of Montpellier, revised Nov 2011.
- Aaron Golub & Ronaldo Balassiano & Ayres Araújo & Eric Ferreira, 2009. "Regulation of the informal transport sector in Rio de Janeiro, Brazil: welfare impacts and policy analysis," Transportation, Springer, vol. 36(5), pages 601-616, September.
- Donna Dosman & Wiktor Adamowicz, 2006.
"Combining Stated and Revealed Preference Data to Construct an Empirical Examination of Intrahousehold Bargaining,"
Review of Economics of the Household,
Springer, vol. 4(1), pages 15-34, 03.
- Dosman, Donna & Adamowicz, Wiktor L., 2002. "Combining Stated And Revealed Preference Data To Construct An Empirical Examination Of Intrahousehold Bargaining," Staff Paper Series 24084, University of Alberta, Department of Resource Economics and Environmental Sociology.
- Termansen, Mette & Zandersen, Marianne & McClean, Colin J., 2008. "Spatial substitution patterns in forest recreation," Regional Science and Urban Economics, Elsevier, vol. 38(1), pages 81-97, January.
- Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761 Elsevier.
- J.M.C. Santos Silva, 2004. "Deriving welfare measures in discrete choice experiments: a comment to Lancsar and Savage (2)," Health Economics, John Wiley & Sons, Ltd., vol. 13(9), pages 913-918.
- Yang, Jui-Chen & Pattanayak, Subhrendu K. & Jonson, F. Reed & Mansfield, Carol & van den Berg, Caroline & Jones, Kelly, 2006. "Unpackaging demand for water service quality : evidence from conjoint surveys in Sri Lanka," Policy Research Working Paper Series 3817, The World Bank.
- Scarpa, Riccardo & Thiene, Mara & Marangon, Francesco, 2006. "Consumer's WTP for Environment-Friendly Production Methods and Collective Reputation for Place of Origin: The Case of Val di Gresta's Carrots," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25637, International Association of Agricultural Economists.
- Edward Morey & Kathleen Greer Rossmann, 2003. "Using Stated-Preference Questions to Investigate Variations in Willingness to Pay for Preserving Marble Monuments: Classic Heterogeneity, Random Parameters, and Mixture Models," Journal of Cultural Economics, Springer, vol. 27(3), pages 215-229, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.