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Parametric and Semi-Nonparametric Estimation of Willingness-to-Pay in the Dichotomous Choice Contingent Valuation Framework

  • John Crooker

    ()

  • Joseph Herriges

Standard procedures for extractingwillingness-to-pay (WTP) from dichotomouschoice CV questionnaires rely heavily uponparametric assumptions regarding thedistribution and form of WTP in the sampledpopulation. However, theory provides littleguidance regarding which parametricspecification to use and the resulting WTPestimates can be sensitive to the selectionsmade. Here we compare and contrast severalparametric and semi-nonparametric estimatorsthat have been proposed in the literature,examining the sensitivity of the resulting WTPestimates to the underlying distribution ofpreferences and the estimation procedureemployed. Copyright Kluwer Academic Publishers 2004

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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 27 (2004)
Issue (Month): 4 (April)
Pages: 451-480

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Handle: RePEc:kap:enreec:v:27:y:2004:i:4:p:451-480
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  1. Carson, Richard T. & Hanemann, W. Michael, 2006. "Contingent Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 17, pages 821-936 Elsevier.
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  3. Chen, Heng Z. & Randall, Alan, 1997. "Semi-nonparametric estimation of binary response models with an application to natural resource valuation," Journal of Econometrics, Elsevier, vol. 76(1-2), pages 323-340.
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