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Meta Analysis in Model Implementation: Choice Sets and the Valuation of Air Quality Improvements

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  • Smith, V. Kerry
  • Banzhaf, H. Spencer

    () (Resources for the Future)

Abstract

We document the sensitivity of welfare estimates derived from discrete choice models to assumptions about the choice set. Such assumptions can affect welfare estimates through both the estimated parameters of the model and, conditional on the parameters, the substitution among alternatives. Our analysis involves estimates of the benefits of air quality improvements in Los Angeles based on discrete choices of neighborhood and housing. We further illustrate the use of meta analysis to document and summarize voluminous information derived from repeated sensitivity analyses.

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  • Smith, V. Kerry & Banzhaf, H. Spencer, 2003. "Meta Analysis in Model Implementation: Choice Sets and the Valuation of Air Quality Improvements," Discussion Papers dp-03-61, Resources For the Future.
  • Handle: RePEc:rff:dpaper:dp-03-61
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    Cited by:

    1. David Scrogin & Richard Hofler & Kevin Boyle & J. Walter Milon, 2010. "An efficiency approach to choice set formation: theory and application to recreational destination choice," Applied Economics, Taylor & Francis Journals, vol. 42(3), pages 333-350.
    2. Mario Raúl de la Peña & Juan A. Núñez-Serrano & Jaime Turrión Sánchez & Francisco Javier Velázquez Angona, 2015. "Are Innovations relevant for consumers in the hospitality industry? A hedonic approach for Cuban hotels
      [¿Son relevantes las innovaciones para los consumidores en la industria hotelera? Una aproxim
      ," Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales 15-05, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
    3. H. Allen Klaiber & V. Kerry Smith, 2013. "Developing general equilibrium benefit analyses for social programs: an introduction and example," Chapters,in: Principles and Standards for Benefit–Cost Analysis, chapter 6, pages 194-246 Edward Elgar Publishing.
    4. Robert J. Johnston & Randall S. Rosenberger, 2010. "Methods, Trends And Controversies In Contemporary Benefit Transfer," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 479-510, July.
    5. Wiktor L. Adamowicz & Klaus Glenk & Jürgen Meyerhoff, 2014. "Choice modelling research in environmental and resource economics," Chapters,in: Handbook of Choice Modelling, chapter 27, pages 661-674 Edward Elgar Publishing.
    6. Heather Klemick & Charles Griffiths & Dennis Guignet & Patrick Walsh, 2015. "Explaining Variation in the Value of Chesapeake Bay Water Quality Using Internal Meta-analysis," NCEE Working Paper Series 201504, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Nov 2015.
    7. repec:eee:eneeco:v:66:y:2017:i:c:p:320-327 is not listed on IDEAS
    8. repec:eee:touman:v:55:y:2016:i:c:p:184-196 is not listed on IDEAS
    9. Carbone, Jared C. & Kerry Smith, V., 2013. "Valuing nature in a general equilibrium," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 72-89.
    10. Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2010. "Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities?," Journal of Environmental Economics and Management, Elsevier, vol. 60(3), pages 145-160, November.
    11. Kaul, Sapna & Boyle, Kevin J. & Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2013. "What can we learn from benefit transfer errors? Evidence from 20 years of research on convergent validity," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 90-104.
    12. Domanski, Adam, 2009. "Estimating Mixed Logit Recreation Demand Models With Large Choice Sets," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49413, Agricultural and Applied Economics Association.
    13. Allen Klaiber, H. & Phaneuf, Daniel J., 2010. "Valuing open space in a residential sorting model of the Twin Cities," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 57-77, September.
    14. Li, Lianhua & Adamowicz, Wiktor & Swait, Joffre, 2015. "The effect of choice set misspecification on welfare measures in random utility models," Resource and Energy Economics, Elsevier, vol. 42(C), pages 71-92.
    15. Scrogin, David & Hofler, Richard & Boyle, Kevin J. & Milon, J. Walter, 2004. "On The Frontier Of Generating Revealed Preference Choice Sets: An Efficient Approach," 2004 Annual meeting, August 1-4, Denver, CO 20134, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Askarov, Zohid & Doucouliagos, Hristos, 2015. "Development Aid and Growth in Transition Countries," World Development, Elsevier, vol. 66(C), pages 383-399.
    17. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics,in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761 Elsevier.

    More about this item

    Keywords

    Meta analysis; random utility model; choice set; air quality; housing;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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