|
on Discrete Choice Models |
| By: | Johane Dikgang and Edwin Muchapondwa |
| Abstract: | This study seeks to value ecosystem services in the Kgalagadi area by applying the Choice Experiment technique. The values placed on dryland ecosystem services by indigenous communities are estimated using a Conditional Logit model, Random Parameter Logit model and a Random Parameter Logit model with interactions. The results show that local communities would prefer getting increased grazing firewood collection, hunting opportunities and harvesting of medicinal plants. |
| Keywords: | choice experiment, conditional logit, ecosystem services, local communities, random parameter logit |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:383&r=dcm |
| By: | Crabbe, Marjolein; Akinc, Deniz; Vandebroek, Martina |
| Abstract: | The mixed logit choice model has become the common standard to analyze transport behavior. Efficient design of the corresponding choice experiments is therefore indispensable to obtain precise knowledge of travelers’ preferences. Accounting for the individual-specific coefficients in the model, this research advocates an individualized design approach. Individualized designs are sequentially generated for each person separately, using the answers from previous choice sets to select the next best set in a survey. In this way they are adapted to the specific preferences of an individual and therefore more efficient than an aggregate design approach. In order for individual sequential designs to be practicable, the speed of designing an additional choice set in an experiment is obviously a key issue. This paper introduces three design criteria used in optimal test design, based on Kullback-Leibler information, and compares them with the well-known D-efficiency criterion to obtain individually adapted choice designs for the mixed logit choice model. Being equally efficient to D-efficiency and at the same time much faster, the Kullback-Leibler criteria are well suited for the design of individualized choice experiments. |
| Keywords: | Discrete choice; Mixed logit; Individualized design; D-efficiency; Kullback-Leibler information; |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/390699&r=dcm |
| By: | Johane Dikgang and Edwin Muchapondwa |
| Abstract: | The economic importance of the dryland ecosystem services in the Kgalagadi area is generally unknown, as is the distribution of benefits from use of the ecosystem services. This study seeks to value ecosystem services in the Kgalagadi area by applying the Choice Experiment technique and thereafter assess the potential for ecosystem services to contribute to the Khomani San livelihoods through a payment for ecosystem services (PES) scheme. The values placed on dryland ecosystem services by tourists are estimated using a Conditional Logit model, Random Parameter Logit model and a Random Parameter Logit model with interactions. The park visitors prefer getting more pristine recreational opportunities, increased chances of seeing predators and show disapproval of granting more access inside the Kgalagadi Transfrontier Park to local communities. This scenario shows that there is a possibility to craft a PES scheme where park visitors could compensate the local communities to accept a restriction of resource use in the Kgalagadi area. |
| Keywords: | choice experiment, conditional logit, ecosystem services, Khomani San, random parameter logit |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:384&r=dcm |
| By: | John Eakins (School of Economics, University College Cork and Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.) |
| Abstract: | This paper analyses the factors which influence the level of possession of cars in Irish households using four rounds of the Household Budget Survey, a large micro cross sectional data set of Irish households. Two qualitative choice models, the multinomial logit model and the ordered logit model are applied and their results compared. Based on various measures of fit, the multinomial logit model appears to be the preferred model. The main factors found to influence car possession include location, age, education and marital status of the head of household, use of public transport, the number of workers, number of non-workers and number of children in the household and total household expenditure. These factors are also consistently observed to influence car ownership over time although the effect of socioeconomic factors such as education and marital status appears to be diminishing. The number of workers in the household and total household expenditure are key determinants and mirror changes experienced at the macro level. The estimated income elasticities for these variables show that the number of workers in the household determines the decision to purchase more than one car to a greater extent than total household expenditure and total household expenditure determines the decision to purchase one car to a greater extent than the number of workers in the household. |
| Keywords: | OECD-Europe Motor Vehicle ownership; Household Survey Data; Multinomial Logit Model; Ordered Logit Model; Income Elasticities. |
| JEL: | R41 C35 D12 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:sur:seedps:144&r=dcm |
| By: | Phoebe Koundouri; Mavra Stithou; Eva Kougea; Pertti Ala-aho; Riku Eskelinen; Timo Karjalainen; Bjorn Klove; Manuel Pulido-Velazquez; Kalle Reinikainen; Pekka M.Rossi |
| Abstract: | Rokua in Northern Finland is a groundwater dependent ecosystem very sensitive to climate change and natural variability. As such, the water level of most of the lakes is a function of the level of the groundwater table of the esker which is naturally recharged. The management of an ecosystem like this is very challenging and complex because of the many associated use and non-use values. The scope of this study is to expose, apart from the use values, the nonmarket values attached to the ecosystems services of groundwater systems and reveal their importance. In particular, this chapter illustrates the contribution of stated preference methods to orient policy making and presents results from an application of a choice experiment and contingent valuation method regarding ground water quantity. General public’s elicited values highlight the importance of water management policy which contributes to the sustainability of groundwater dependent ecosystems. Importantly results highlight the need to broaden the policy options beyond the consideration of market and use values of groundwater systems. Instead these systems should be considered as part of the broader ecosystems and broader services considered in decision making. |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp129&r=dcm |
| By: | McInnes, Melayne; Ozturk, Orgul; McDermott, Suzanne; Mann, Joshua |
| Abstract: | In a climate of flat or shrinking budgets, can programs reallocate existing resources to improve efficiency? We illustrate the potential for gains from redirecting resources using data from a state job coaching program that is designed to increase employment among adults with intellectual disabilities (ID). We model selection into the program and employment outcomes for participants and non-participants allowing for potentially heterogeneous response among observationally equivalent individuals. In our simulations, we find that state ID population employment can be increased from 10.7 percent to an upper bound of 16.7 percent by a program administrator who can allocate the job coaches to those with the most to gain. This is a 56 percent increase in the overall employment rate. While we assume that program administrators know more about individual program participants than we do, we can consider an administrator who has only the information available to the econometrician. In this case, targeting gains based only on observable characteristics would lead to 11.8 percent employment, which is an 11 percent increase in the overall employment rate. Surprisingly, a simple rule that only requires administrators to predict employment success when treated (based on observables) will achieve almost the same results. |
| Keywords: | Social program evaluation; Discrete-choice models; Policy simulations; Factor structure model |
| JEL: | C50 H43 J24 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51392&r=dcm |