Semiparametric Estimation of Willingness to Pay Distributions
The most popular survey method used in contingent valuations asks "open-ended" dichotomous choice questions. This method generates grouped or interval-censored data on respondents' willingness to pay. This paper specifies the willingness to pay distribution using the proportional hazard specification in duration analysis. This semiparametric distribution, on the one hand, controls for the effects of observed personal characteristics, and on the other, allows the shape of the distribution to be unspecified. To estimate the willingness to pay distribution from grouped data, we propose both a maximum likelihood estimation method and a minimum Chi-square method. The latter procedure applies to "many observations per cell" cases where the observable covariates are either categorical or amendable to sensible grouping. Specification tests for the proportionality assumption are proposed. The statistical inference procedures are illustrated using the data set from the San Joaquin Valley contingent valuation survey.
|Date of creation:||1996|
|Contact details of provider:|| Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097|
Phone: (919) 660-1800
Fax: (919) 684-8974
Web page: http://econ.duke.edu/
References listed on IDEAS
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.:
- An, Mark Y. & Roberto Ayala, 1995.
"A Mixture Model of Willingness to Pay Distributions,"
95-21, Duke University, Department of Economics.
- Mark Yuying An & Roberto Ayala, 1996. "A Mixture Model of Willingness to Pay Distributions," Econometrics 9611002, EconWPA.
- Horowitz, Joel L, 1992. "A Smoothed Maximum Score Estimator for the Binary Response Model," Econometrica, Econometric Society, vol. 60(3), pages 505-531, May.
- Klein, Roger W & Spady, Richard H, 1993.
"An Efficient Semiparametric Estimator for Binary Response Models,"
Econometric Society, vol. 61(2), pages 387-421, March.
- Klein, R.W. & Spady, R.H., 1991. "An Efficient Semiparametric Estimator for Binary Response Models," Papers 70, Bell Communications - Economic Research Group.
- Han, Aaron K., 1987. "Non-parametric analysis of a generalized regression model : The maximum rank correlation estimator," Journal of Econometrics, Elsevier, vol. 35(2-3), pages 303-316, July.
- Mark Yuying An & Roberto Ayala, 1996.
"Nonparametric Estimation of a Survivor Function with Across- Interval-Censored Data,"
- An, Mark Yuying & Ayala, Roberto A., 1996. "Nonparametric Estimation of a Survivor Function with Across-Interval-Censored Data," Working Papers 96-02, Duke University, Department of Economics.
- Manski, Charles F., 1975. "Maximum score estimation of the stochastic utility model of choice," Journal of Econometrics, Elsevier, vol. 3(3), pages 205-228, August.
- Sueyoshi, Glenn T, 1995. "A Class of Binary Response Models for Grouped Duration Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 411-431, Oct.-Dec..
- Ichimura, H., 1991. "Semiparametric Least Squares (sls) and Weighted SLS Estimation of Single- Index Models," Papers 264, Minnesota - Center for Economic Research.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
- Daniel McFadden, 1994. "Contingent Valuation and Social Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 689-708.
- An, Mark Y., 1995. "Econometric Analysis of Sequential Discrete Choice Models," Working Papers 95-55, Duke University, Department of Economics.
- Kopp, Raymond & Smith, V. Kerry & Mitchell, Robert & Presser, Stanley & Ruud, Paul & Hanemann, W. Michael & Krosnick, Jon & Conaway, Michael & Martin, Kerry & Carson, Richard, 1996.
"Was the NOAA Panel Correct About Contingent Valuation?,"
dp-96-20, Resources For the Future.
- Carson, Richard T. & Hanemann, W. Michael & Kopp, Raymond J. & Krosnick, Jon A. & Mitchell, Robert C. & Presser, Stanley & Ruud, Paul A. & Smith, V. Kerry, 1996. "Was the NOAA Panel Correct about Contingent Valuation?," Working Papers 96-21, Duke University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:duk:dukeec:96-20. 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: (Department of Economics Webmaster)
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.