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Generalized Estimation Methods for Non-i.i.d. Binary Data: An Application to Dichotomous Choice Contingent Valuation

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Author Info
Kim, Soo-Il
Haab, Timothy C.

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Abstract

We challenge the assumption of i.i.d random utility across alternatives embedded in typical applications of logit models to dichotomous choice contingent valuation data. Using a Gumbel mixed distribution which nests a number of traditional models, we show that the logistic distribution is not a suitable distribution for contingent valuation analysis.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19138.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19138

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Keywords: Research Methods/ Statistical Methods;

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  1. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239. [Downloadable!] (restricted)
  2. Bhat, Chandra R., 1997. "Covariance heterogeneity in nested logit models: Econometric structure and application to intercity travel," Transportation Research Part B: Methodological, Elsevier, vol. 31(1), pages 11-21, February. [Downloadable!] (restricted)
  3. McFadden, Daniel, 1989. "A Method of Simulated Moments for Estimation of Discrete Response Models without Numerical Integration," Econometrica, Econometric Society, vol. 57(5), pages 995-1026, September. [Downloadable!] (restricted)
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  4. repec:cup:cbooks:9780521017152 is not listed on IDEAS
  5. Smith, V. Kerry, 1996. "Pricing What is Priceless: A Status Report on Non-Market Valuation of Environmental Resources," Working Papers 96-30, Duke University, Department of Economics.
  6. Haab, Timothy C. & Hicks, Robert L., 1999. "Choice Set Considerations In Models Of Recreation Demand: History And Current State Of The Art," Marine Resource Economics, Marine Resources Foundation, vol. 14(4). [Downloadable!]
  7. Bhat, Chandra, 1999. "An analysis of evening commute stop-making behavior using repeated choice observations from a multi-day survey," Transportation Research Part B: Methodological, Elsevier, vol. 33(7), pages 495-510, September. [Downloadable!] (restricted)
  8. Provencher, Bill & Bishop, R.C.Richard C., 2004. "Does accounting for preference heterogeneity improve the forecasting of a random utility model? A case study," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 793-810, July. [Downloadable!] (restricted)
  9. Hensher, David & Louviere, Jordan & Swait, Joffre, 1998. "Combining sources of preference data," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 197-221, November. [Downloadable!] (restricted)
  10. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470. [Downloadable!]
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