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

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

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.

Suggested Citation

  • Banzhaf, H. Spencer & Smith, V. Kerry, 2003. "Meta Analysis in Model Implementation: Choice Sets and the Valuation of Air Quality Improvements," Discussion Papers 10453, Resources for the Future.
    • Handle: RePEc:ags:rffdps:10453
    DOI: 10.22004/ag.econ.10453
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    More about this item

    Keywords

    Environmental Economics and Policy;

    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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