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Simulating WTP Values from Random-Coefficient Models

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  • Maurus Rischatsch

    ()
    (Socioeconomic Institute, University of Zurich)

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    Abstract

    Discrete Choice Experiments (DCEs) designed to estimate willingness-to-pay (WTP) values are very popular in health economics. With increased computation power and advanced simulation techniques, random-coefficient models have gained an increasing importance in applied work as they allow for taste heterogeneity. This paper discusses the parametrical derivation of WTP values from estimated random-coefficient models and shows how these values can be simulated in cases where they do not have a known distribution.

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    File URL: http://www.soi.uzh.ch/research/wp/2009/wp0912.pdf
    File Function: first version, 2009
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    Bibliographic Info

    Paper provided by Socioeconomic Institute - University of Zurich in its series SOI - Working Papers with number 0912.

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    Length: 6 pages
    Date of creation: Jul 2009
    Date of revision:
    Handle: RePEc:soz:wpaper:0912

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    Related research

    Keywords: willingness-to-pay; discrete choice; simulation; random-coe±cient models;

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