Estimating Distributions of Willingness to Pay for Heterogeneous Populations
Random parameters logit models have emerged as a standard approach in estimating public preferences for a range of goods and services. However, to simplify calculation of welfare measures, the marginal utility of income is often assumed to be constant across the population. We show that by shifting distributional assumptions from marginal utilities to the welfare measures themselves, a random parameters version of a censored logistic regression model (Cameron 1988) yields distributions of welfare measures more directly and without imposing any unnecessary assumption on the marginal utility of income. We develop the theoretical framework for the model and apply it to contingent choice survey data for siting a noxious facility in Rhode Island. In this application, our proposed model and random parameters logit yield similar mean willingness to pay, but welfare measures are more readily interpretable in the proposed model.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 75 (2009)
Issue (Month): 3 (January)
|Contact details of provider:|| Web page: http://www.southerneconomic.org/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:75:3:y:2009:p:593-610. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.