Welfare Calculations in Models of the Demand for Sanitation
AbstractEmpirical and theoretical research on the demand for health inputs has been, and still is, extensive. However, much of the focus of discrete choice studies has been on the effects of various attributes on household choice of e.g. health care provider and little attention has been paid to environmental health related inputs and welfare analyses of price changes. Policymakers and donor agencies involved in sanitation programmes will typically be interested in the welfare implications of different policy alternatives. Contrary to earlier studies the purpose of the present paper is to analyse the welfare implications of price changes for certain sanitation-related inputs. In addition, a comparison of the welfare estimates derived from the ''standard'' approach, i.e. the conditional logit model and the more novel approach i.e. the random parameter/mixed logit model is undertaken. The findings suggest that model choice indeed have implications for the results since the welfare estimates from the two models differ quite remarkably.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2000:12.
Length: 26 pages
Date of creation: 01 Nov 2000
Date of revision: 26 Jan 2000
Publication status: Published in Applied Economics, 2002, pages 1509-1518.
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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
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Sanitation; Household Demand; Discrete Choice; Mixed Logit; Welfare;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
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- Hindman Persson, Therése, 2001. "Demand for Water and Sanitation in Bangladesh," Working Papers 2001:3, Lund University, Department of Economics.
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