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Estimating Intergenerational Distribution Preferences Using Choice Modelling

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Author Info
Helen Scarborough () (Deakin University)
Jeff Bennett () (Australian National University)

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Abstract

Resource management decisions influence not only the output of the economy but also the distribution of utility between groups within the community. The theory of Cost Benefit Analysis provides a means of incorporating distributional changes into the decision making calculus through the application of distributional or welfare weights. This paper reports the results of research designed to estimate distributional weights suitable for inclusion in a Cost Benefit Analysis framework. The findings of a choice modelling experiment designed to estimate community preferences with respect to intergenerational utility distribution are presented.

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File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2006_26eco.pdf
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Publisher Info
Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2006_26.

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Length: 30 pages
Date of creation: 21 Nov 2006
Date of revision:
Handle: RePEc:dkn:econwp:eco_2006_26

Note: Helen Scarborough is the corresponding author for this paper.
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Related research
Keywords: Distributional weights; Cost benefit analysis; Intergenerational distribution; Choice modelling;

Find related papers by JEL classification:
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting
C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

References listed on IDEAS
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    Other versions:
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  3. Squire, Lyn, 1989. "Project evaluation in theory and practice," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 21, pages 1093-1137 Elsevier. [Downloadable!] (restricted)
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  5. Layard, Richard, 1980. "On the Use of Distributional Weights in Social Cost-Benefit Analysis," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 1041-47, October. [Downloadable!] (restricted)
  6. Medin, Hege & Nyborg, Karine & Bateman, Ian, 2001. "The assumption of equal marginal utility of income: how much does it matter?," Ecological Economics, Elsevier, vol. 36(3), pages 397-411, March. [Downloadable!] (restricted)
    Other versions:
  7. Squire, Lyn, 1980. "On the Use of Distributional Weights in Social Cost-Benefit Analysis," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 1048-49, October. [Downloadable!] (restricted)
  8. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-40, September. [Downloadable!] (restricted)
    Other versions:
  9. Kenneth Arrow et al., 2004. "Are We Consuming Too Much?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 147-172, Summer. [Downloadable!] (restricted)
  10. Nyborg, Karine, 2000. "Homo Economicus and Homo Politicus: interpretation and aggregation of environmental values," Journal of Economic Behavior & Organization, Elsevier, vol. 42(3), pages 305-322, July. [Downloadable!] (restricted)
  11. Harberger, Arnold C, 1978. "On the Use of Distributional Weights in Social Cost-Benefit Analysis," Journal of Political Economy, University of Chicago Press, vol. 86(2), pages S87-120, April. [Downloadable!] (restricted)
  12. Olof Johansson-Stenman & Fredrik Carlsson & Dinky Daruvala, 2002. "Measuring Future Grandparents" Preferences for Equality and Relative Standing," Economic Journal, Royal Economic Society, vol. 112(479), pages 362-383, April. [Downloadable!] (restricted)
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