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Welfare measurement bias in household and on-site surveying of water-based recreation : an application to Lake Sevan, Armenia

  • Meisner, Craig
  • Wang, Hua
  • Laplante, Benoit

Studies comparing household surveys with on-site interceptor surveys have typically accounted for over-sampling avid users in the on-site interceptor surveys (that is, endogenous stratification). However, these studies have typically not accounted for the possibility that the household sample may contain a large presence of zero observations. If a large proportion of the population does not recreate at the site for any value of the price vector, this inflation of zero observations leads to biased welfare estimates and an inadequate comparison with the on-site survey. In this paper, the authors estimate and compare three models which correct for these measurement issues in both the household and on-site surveys. Results from an application to recreation at Lake Sevan (Armenia) indicate that household consumers'surplus is not statistically different from that of the on-site survey once the authors account for zero-inflation in the household sample and endogenous stratification in the on-site sample.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3932.

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Date of creation: 01 Jun 2006
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Handle: RePEc:wbk:wbrwps:3932
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  1. Roberto Martinez-Espineira & Joe Amoako-Tuffour, 2005. "Recreation Demand Analysis under Truncation, Overdispersion, and Endogenous Stratification: An Application to Gros Morne National Park," Econometrics 0511007, EconWPA.
  2. Timothy C. Haab & Kenneth E. McConnell, 1996. "Count Data Models and the Problem of Zeros in Recreation Demand Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 89-102.
  3. Shaw, W. Douglass & Jakus, Paul M., 1996. "Travel Cost Models Of The Demand For Rock Climbing," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), October.
  4. Hellerstein, Daniel, 1991. "Using Count Data Models in Travel Cost Analysis with Aggregate Data," MPRA Paper 25264, University Library of Munich, Germany.
  5. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
  6. Gourieroux Christian & Monfort Alain & Trognon A, 1981. "Pseudo maximum likelihood methods : theory," CEPREMAP Working Papers (Couverture Orange) 8129, CEPREMAP.
  7. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-33, March.
  8. Shaw, Daigee, 1988. "On-site samples' regression : Problems of non-negative integers, truncation, and endogenous stratification," Journal of Econometrics, Elsevier, vol. 37(2), pages 211-223, February.
  9. Englin, Jeffrey & Shonkwiler, J S, 1995. "Estimating Social Welfare Using Count Data Models: An Application to Long-Run Recreation Demand under Conditions of Endogenous Stratification and Truncation," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 104-12, February.
  10. Shonkwiler, John Scott & Shaw, W. Douglass, 1996. "Hurdle Count-Data Models In Recreation Demand Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(02), December.
  11. Gurmu, Shiferaw & Trivedi, Pravin K, 1996. "Excess Zeros in Count Models for Recreational Trips," Journal of Business & Economic Statistics, American Statistical Association, vol. 14(4), pages 469-77, October.
  12. Grogger, J T & Carson, Richard T, 1991. "Models for Truncated Counts," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 6(3), pages 225-38, July-Sept.
  13. David Scrogin & Kevin Boyle & George Parsons & Andrew J. Plantinga, 2004. "Effects of Regulations on Expected Catch, Expected Harvest, and Site Choice of Recreational Anglers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 963-974.
  14. Joseph Hilbe, 1999. "Zero-truncated Poisson and negative binomial regression," Stata Technical Bulletin, StataCorp LP, vol. 8(47).
  15. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
  16. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-38, July.
  17. John Curtis, 2003. "Demand for Water-based Leisure Activity," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 46(1), pages 65-77.
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