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The economics of participatory value evaluation

Author

Listed:
  • Thijs Dekker

    (University of Leeds)

  • Paul (P.R.) Koster

    (Vrije Universiteit)

  • Niek Mouter

    (Technical University Delft)

Abstract

This paper develops a novel approach to the economic evaluation of public policies: participatory value evaluation (PVE). PVE involves citizens directly in decisions of the government, taking into account governmental and individual budget constraints. Citizens receive reliable information on social impacts and can choose the best portfolio of projects according to their social preferences. This paper develops the economic and econometric theoretical framework for fixed budget and flexible budget PVE experiments which allows us to directly measure the change in social welfare for investments in water infrastructure in The Netherlands.

Suggested Citation

  • Thijs Dekker & Paul (P.R.) Koster & Niek Mouter, 2019. "The economics of participatory value evaluation," Tinbergen Institute Discussion Papers 19-008/VIII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20190008
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    References listed on IDEAS

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    4. von Haefen R.H. & Phaneuf D.J. & Parsons G.R., 2004. "Estimation and Welfare Analysis With Large Demand Systems," Journal of Business & Economic Statistics, American Statistical Association, vol. 22, pages 194-205, April.
    5. Bhat, Chandra R., 2018. "A new flexible multiple discrete–continuous extreme value (MDCEV) choice model," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 261-279.
    6. Nyborg, Karine, 2014. "Project evaluation with democratic decision-making: What does cost–benefit analysis really measure?," Ecological Economics, Elsevier, vol. 106(C), pages 124-131.
    7. Lloyd-Smith, Patrick, 2018. "A new approach to calculating welfare measures in Kuhn-Tucker demand models," Journal of choice modelling, Elsevier, vol. 26(C), pages 19-27.
    8. Nurmi, Väinö & Ahtiainen, Heini, 2018. "Distributional Weights in Environmental Valuation and Cost-benefit Analysis: Theory and Practice," Ecological Economics, Elsevier, vol. 150(C), pages 217-228.
    9. Nyborg, Karine, 2000. "Homo Economicus and Homo Politicus: interpretation and aggregation of environmental values," Journal of Economic Behavior & Organization, Elsevier, vol. 42(3), pages 305-322, July.
    10. Bhat, Chandra R., 2008. "The multiple discrete-continuous extreme value (MDCEV) model: Role of utility function parameters, identification considerations, and model extensions," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 274-303, March.
    11. Pavel Kabat & Wim van Vierssen & Jeroen Veraart & Pier Vellinga & Jeroen Aerts, 2005. "Climate proofing the Netherlands," Nature, Nature, vol. 438(7066), pages 283-284, November.
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    Citations

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    Cited by:

    1. Niek Mouter & Paul Koster & Thijs Dekker, 2019. "Participatory Value Evaluation versus Cost-Benefit Analysis: comparing recommendations in the context of urban mobility investments," Tinbergen Institute Discussion Papers 19-046/VIII, Tinbergen Institute, revised 27 Jan 2020.
    2. Niek Mouter & Paul Koster & Thijs Dekker, 2019. "An introduction to Participatory Value Evaluation," Tinbergen Institute Discussion Papers 19-024/V, Tinbergen Institute, revised 15 Dec 2019.
    3. Mulderij, Lisanne S. & Hernández, José Ignacio & Mouter, Niek & Verkooijen, Kirsten T. & Wagemakers, Annemarie, 2021. "Citizen preferences regarding the public funding of projects promoting a healthy body weight among people with a low income," Social Science & Medicine, Elsevier, vol. 280(C).
    4. Collewet, Marion & Koster, Paul, 2023. "Preference estimation from point allocation experiments," Journal of choice modelling, Elsevier, vol. 48(C).
    5. Hernandez, Jose Ignacio & van Cranenburgh, Sander & Chorus, Caspar & Mouter, Niek, 2023. "Data-driven assisted model specification for complex choice experiments data: Association rules learning and random forests for Participatory Value Evaluation experiments," Journal of choice modelling, Elsevier, vol. 46(C).
    6. Caputo, Vincenzina & Lusk, Jayson L., 2022. "The Basket-Based Choice Experiment: A Method for Food Demand Policy Analysis," Food Policy, Elsevier, vol. 109(C).

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    More about this item

    Keywords

    participatory value evaluation; cost-benefit assessment; welfare analysis; discrete-continuous choice models;
    All these keywords.

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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