Testing the stability of the Benefit Transfer Function for Discrete Choice Contingent Valuation Data
AbstractWe examine the stability of the benefit transfer function across 42 recreational forests in the British Isles. A working definition of reliable function transfer is put forward, and a suitable statistical test is provided. The test is based on the sensitivity of the model log-likelihood to removal of individual forest recreation sites. We apply the proposed methodology on discrete choice contingent valuation data and find that a stable function improves our measure of transfer reliability, but not by much. We conclude that, in empirical studies on transferability, function stability considerations are secondary to the availability and quality of site attribute data. Modellers’ can study the advantages of transfer function stability vis-à-vis the value of additional information on recreation site attributes.
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Bibliographic InfoPaper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 07/08.
Length: 21 pages
Date of creation: 25 May 2007
Date of revision:
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Benefit function transfer ; Function stability tests; Transfer reliability Forest recreation values; Contingent Valuation; Split sample;
Other versions of this item:
- Matthews, D.I. & Hutchinson, W.G. & Scarpa, R., 2009. "Testing the stability of the benefit transfer function for discrete choice contingent valuation data," Journal of Forest Economics, Elsevier, vol. 15(1-2), pages 131-146, January.
- Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-06-02 (Agricultural Economics)
- NEP-ALL-2007-06-02 (All new papers)
- NEP-DCM-2007-06-02 (Discrete Choice Models)
- NEP-ENV-2007-06-02 (Environmental Economics)
- NEP-PBE-2007-06-02 (Public Economics)
- NEP-TUR-2007-06-02 (Tourism Economics)
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.:
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- Scarpa, Riccardo & Hutchinson, W. George & Chilton, Susan M. & Buongiorno, Joseph, 2000. "Importance of forest attributes in the willingness to pay for recreation: a contingent valuation study of Irish forests," Forest Policy and Economics, Elsevier, vol. 1(3-4), pages 315-329, December.
- Roberto Leon-Gonzalez & Riccardo Scarpa, 2007. "Robust Benefit Function Transfer: A Bayesian Model Averaging Approach," Discussion Papers in Economics 07/01, Department of Economics, University of Leicester.
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