Household versus individual valuation: what’s the difference?
AbstractStandard practice in stated preference typically blurs the distinction between household and individual responses, but without a clear theoretical or empirical justification for this approach. To date there have been no empirical tests of whether values for say a two adult household elicited by interviewing one randomly selected adult are the same as the values generated by interviewing both adults simultaneously. Using cohabiting couples, we conduct a choice experiment field study valuing reductions in dietary health risks. In one treatment a random individual is chosen from the couple and interviewed alone; in the other treatment, both partners are questioned jointly. We find significant differences in household values calculated from joint as opposed to individual responses, with further variation between the values elicited from men and women. Our results question the assumption, implicit in common practice, that differences between individually and jointly elicited estimates of household values can effectively be ignored.
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Bibliographic InfoPaper provided by Department of Economics, Royal Holloway University of London in its series Royal Holloway, University of London: Discussion Papers in Economics with number 06/02.
Length: 47 pages
Date of creation: Feb 2006
Date of revision: Feb 2006
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Other versions of this item:
- Ian Bateman & Alistair Munro, 2009. "Household Versus Individual Valuation: What’s the Difference?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(1), pages 119-135, May.
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-06-17 (All new papers)
- NEP-DCM-2006-06-17 (Discrete Choice Models)
- NEP-EXP-2006-06-17 (Experimental Economics)
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