nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2010‒07‒31
two papers chosen by
Philip Yu
Hong Kong University

  1. The Effect of Waiting Time and Distance on Hospital Choice for English Cataract Patients By Peter Sivey
  2. Can cheap panel-based internet surveys substitute costly in-person interviews in CV surveys? By Lindhjem, Henrik; Navrud, Ståle

  1. By: Peter Sivey (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
    Abstract: This paper applies latent-class and multinomial logit models to the choice of hospital for cataract operations in the UK NHS. We concentrate on the effects of travel time and waiting time and especially on the waiting time elasticity of demand. Models including hospital fixed effects rely on changes over time in waiting time to indentify coefficients. The results show how using latent-class multinomial logit models characterises the unobserved heterogeneity in GP practices' choice behaviour and affects the estimated waiting time elasticities of demand. The models estimate waiting time elasticities of demand of approximately -0.1, comparable with previous waiting time-demand models. For the average waiting time elasticity, the simple multinomial logit models are good approximations of the latent-class logit results.
    Keywords: hospital choice, waiting time, latent class model
    JEL: I11
    Date: 2010–07
  2. By: Lindhjem, Henrik; Navrud, Ståle
    Abstract: With the current growth in broadband penetration, Internet is likely to be the data collection mode of choice for stated preference research in the not so distant future. However, little is known about how this survey mode may influence data quality and welfare estimates. In a first controlled field experiment to date as part of a national contingent valuation (CV) survey estimating willingness to pay (WTP) for biodiversity protection plans, we assign two groups sampled from the same panel of respondents either to an Internet or in-person (in-house) interview mode. Our design is better able than previous studies to isolate measurement effects from sample composition effects. We find little evidence of social desirability bias in the in-person interview setting or satisficing (shortcutting the response process) in the Internet survey. The share of “don’t knows”, zeros and protest responses to the WTP question with a payment card is very similar between modes. Equality of mean WTP between samples cannot be rejected. Considering equivalence, we can reject that mean WTP from the in-person sample is more than 30% higher. Results are quite encouraging for the use of Internet in CV as stated preferences do not seem to be significantly different or biased compared to in-person interviews.
    Keywords: Internet; contingent valuation; interviews; survey mode; willingness to pay
    JEL: H41 Q51
    Date: 2010–07–09

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