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Household versus individual valuation: what’s the difference?

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Author Info
Alistair Munro () (Department of Economics, Royal Holloway, University of London)
Ian J. Bateman () (School of Environmental Sciences, University of East Anglia, Norwich, UK)

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Abstract

Standard 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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File URL: http://www.rhul.ac.uk/economics/Research/WorkingPapers/pdf/dpe0602.pdf
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Publisher Info
Paper 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.

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Length: 47 pages
Date of creation: Feb 2006
Date of revision: Feb 2006
Handle: RePEc:hol:holodi:0602

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Related research
Keywords: Household values; choice experiment; contingent valuation; food and health risks;

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Find related papers by JEL classification:
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

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Ian Bateman & Alistair Munro, 2005. "An Experiment on Risky Choice Amongst Households," Economic Journal, Royal Economic Society, vol. 115(502), pages C176-C189, 03. [Downloadable!] (restricted)
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  3. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Henrik Lindhjem & Ståle Navrud, 2009. "Asking for Individual or Household Willingness to Pay for Environmental Goods?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(1), pages 11-29, May. [Downloadable!] (restricted)
  2. Goode, Alison & Mavromaras, Kostas G. & Smith, Murray, 2008. "Intergenerational Transmission of Healthy Eating Behaviour and the Role of Household Income," IZA Discussion Papers 3535, Institute for the Study of Labor (IZA). [Downloadable!]
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