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Simulating WTP Values from Random-Coefficient Models

Author

Listed:
  • Maurus Rischatsch

    (Socioeconomic Institute, University of Zurich)

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.

Suggested Citation

  • Maurus Rischatsch, 2009. "Simulating WTP Values from Random-Coefficient Models," SOI - Working Papers 0912, Socioeconomic Institute - University of Zurich.
    • Handle: RePEc:soz:wpaper:0912
    as

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    File URL: https://www.econ.uzh.ch/apps/workingpapers/wp/wp0912.pdf
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    References listed on IDEAS

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    2. Narjes, Manuel & Lippert, Christian, 2014. "The Value of Policies to Conserve Native Bees in Northern Thailand-A Discrete Choice Experiment," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187427, German Association of Agricultural Economists (GEWISOLA).

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    More about this item

    Keywords

    willingness-to-pay; discrete choice; simulation; random-coe±cient models;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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