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Using a Generalized Linear Mixed Model to Analyze Dichotomous Choice Contingent Valuation Data


  • Ian H. Langford


Willingness-to-pay (WTP) responses from dichotomous choice contingent valuation studies are often modeled using logistic regression, from which estimates of mean or median WTP are calculated. However, a great many factors influence an individual's WTP, some of which may be unobserved. Hence, the regression model may have inadequate explanatory power, and parameter estimates may be biased and their significance overestimated. The effects of this overdispersion are examined within a generalized linear mixed modeling framework, and an example given using published data from Cooper and Loomis (1992).

Suggested Citation

  • Ian H. Langford, 1994. "Using a Generalized Linear Mixed Model to Analyze Dichotomous Choice Contingent Valuation Data," Land Economics, University of Wisconsin Press, vol. 70(4), pages 507-514.
  • Handle: RePEc:uwp:landec:v:70:y:1994:i:4:p:507-514

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    References listed on IDEAS

    1. M J Hagey & E J Malecki, 1986. "Linkages in High Technology Industries: A Florida Case Study," Environment and Planning A, , vol. 18(11), pages 1477-1498, November.
    2. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
    3. M J Hagey & E J Malecki, 1986. "Linkages in high technology industries: a Florida case study," Environment and Planning A, Pion Ltd, London, vol. 18(11), pages 1477-1498, November.
    4. James P. Miller & Herman Bluestone, 1988. "Prospects for Service Sector Employment Growth in Non-Metropolitan America," The Review of Regional Studies, Southern Regional Science Association, vol. 18(1), pages 28-41, Winter.
    5. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, Oxford University Press, vol. 80(2), pages 190-207.
    6. P N O'Farrell & B O'Loughlin, 1981. "New Industry Input Linkages in Ireland: An Econometric Analysis," Environment and Planning A, , vol. 13(3), pages 285-308, March.
    7. James P. Miller, 1989. "The Product Cycle and High Technology Industry in Nonmetropolitan Areas, 1976-1980," The Review of Regional Studies, Southern Regional Science Association, vol. 19(1), pages 1-12, Winter.
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    Cited by:

    1. Langford, Ian H. & Bateman, Ian J., 1996. "Elicitation and truncation effects in contingent valuation studies," Ecological Economics, Elsevier, vol. 19(3), pages 265-267, December.

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