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Valuing Public Goods: Discrete versus Continuous Contingent-Valuation Responses

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  • Kevin J. Boyle
  • F. Reed Johnson
  • Daniel W. McCollum
  • William H. Desvousges
  • Richard W. Dunford
  • Sara P. Hudson

Abstract

Independent applications of open-ended and dichotomous-choice formats are compared using tests of means, estimating joint likelihood functions and nonparametric tests of distributions. The null hypothesis of no difference in the open-ended and dichotomous-choice estimates of central tendency cannot be rejected for two out of three data sets, while estimated standard deviations are significantly different for all three data sets. In addition, actual dichotomous-choice means and standard deviations exceed those from comparable synthetic dichotomous-choice data sets, suggesting either open-ended questions underestimate values or dichotomous-choice bid structures may lead to systematic overestimates.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 72 (1996)
Issue (Month): 3 ()
Pages: 381-396

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Handle: RePEc:uwp:landec:v:72:y:1996:i:3:p:381-396

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Web page: http://le.uwpress.org/

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  1. > Environmental and Natural Resource Economics > Environmental Economics > Valuation > Contingent valuation method > Question format and econometric issues
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