nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2009‒12‒19
three papers chosen by
Philip Yu
Hong Kong University

  1. State Dependence in Unemployment among Danish Immigrants By Nisar Ahmad
  2. German car buyers' willingness to pay to reduce CO2 emissions By Achtnicht, Martin
  3. The Value of Native Bird Conservation: A New Zealand Case Study By Pamela Kaval; Matthew Roskruge

  1. By: Nisar Ahmad (School of Economics and Management, University of Aarhus, Denmark)
    Abstract: This study examines the extent state dependence among unemployed Danish immigrants in a dynamic discrete choice framework. Three alternative methodologies are employed to control for the problem of the initial condition. The empirical findings show that there is a considerable correlation between the unobserved individual heterogeneity and the initial condition and that the degree of state dependence is overstated if we do not address this problem. The results show that an individual who was unemployed at period “t-1” has 6.5 percentage points higher probability of being unemployed again at period t compared to an individual who was employed at period “t-1”. This average partial effect is the same for western compared to non-western immigrants and women compared to men.
    Keywords: Immigrants, unemployment, state dependence, unobserved heterogeneity, dynamic random effects models
    JEL: J22 C23 C25
    Date: 2009–12–04
  2. By: Achtnicht, Martin
    Abstract: Motorised individual transport strongly contributes to global CO2 emissions, due to its intensive usage of fossil fuels. Current political efforts addressing this issue (i.e. emission performance standards in the EU) are directed towards car manufacturers. This paper focuses on the demand side. It examines whether CO2 emissions per kilometre is a relevant attribute in car choices. Based on a stated preference experiment among potential car buyers from Germany, different mixed logit specifications are estimated. In addition, distributions of willingness to pay measures for an abatement of CO2 emissions are obtained. The results suggest that the emissions performance of a car matters substantially, but its consideration varies heavily across the sampled population. In particular, some evidence on gender, age and education effects on climate concerns is provided. --
    Keywords: CO2 emissions,Willingness to pay,Passenger cars,Stated preferences,Mixed logit
    JEL: C25 D12 Q51
    Date: 2009
  3. By: Pamela Kaval (University of Waikato); Matthew Roskruge (University of Waikato)
    Abstract: During December 2007 and January 2008, telephone surveys were used to randomly sample Waikato, New Zealand residents. The purpose of the surveys was to determine whether respondents valued native bird conservation programmes in their area. We elicited the contingent valuation approach to determine the value in terms of their willingness-to-pay (WTP) to support regional conservation initiatives aimed at protecting, or restoring, native bird populations. Results indicated that local birdlife was regarded positively by residents and that they were in favour of local conservation and restoration initiatives. 86% of respondents were willing-to-pay an annual addition to their rates (taxes) to support these initiatives. Conservatively, the value of native bird conservation in the region was approximately $13 million (2008 NZ$). Willingness to support these initiatives depended strongly on income, ethnicity and age. The positive WTP for additional regional rates for local birdlife conservation suggests that there could potentially be an underinvestment in birdlife conservation in the Waikato region, and that regional bodies could draw upon local funding, as opposed to relying on central government funding, to support these initiatives.
    Keywords: contingent valuation method; endangered species; New Zealand; native birdlife; bird conservation
    JEL: Q51 Q57 Q26
    Date: 2009–11–15

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