nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2015‒06‒20
four papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Preferences for REDD+ contract attributes in low-income countries : a choice experiment in Ethiopia By Dissanayake,Sahan T. M.; Beyene,Abebe Damte; Bluffstone,Randall; Gebreegziabher, Zenebe; Martinsson,Peter; Mekonnen,Alemu; Toman,Michael A.; Vieider,Ferdinand M.
  2. How people pay in Uruguay: the role of transaction characteristics By Rodrigo Lluberas
  3. Consumer Preferences for Improvements in Mobile Telecommunication Services By Orhan Dagli; Glenn P. Jenkins
  4. Firms? locational choice and infrastructure development in Tanzania : instrumental variable spatial autoregressive model By Iimi,Atsushi; Humphreys,Richard Martin; Melibaeva,Sevara

  1. By: Dissanayake,Sahan T. M.; Beyene,Abebe Damte; Bluffstone,Randall; Gebreegziabher, Zenebe; Martinsson,Peter; Mekonnen,Alemu; Toman,Michael A.; Vieider,Ferdinand M.
    Abstract: This paper informs the national and international policy discussions related to the adoption of the United Nations Reducing Emissions from Deforestation and Forest Degradation Programme. Effective program instruments must carefully consider incentives, opportunity costs, and community interactions. A choice experiment survey was applied to rural Ethiopian communities to understand respondents? preferences toward the institutional structure of the program contracts. The results show that respondents have particular preferences about how Reducing Emissions from Deforestation and Forest Degradation programs are structured with regard to the manner in which the payments are divided between the households and the communities, the restrictions on using grazing land, and the level of payments received for the program. Surprisingly, restrictions on firewood collection do not significantly impact contract choice. The paper further analyzes the structure of the preferences by using attribute interaction terms and socio-demographic interaction terms. The analysis finds significant regional variation in preferences, indicating that Reducing Emissions from Deforestation and Forest Degradation should be tailored to specific regions. Finally, the marginal willingness to pay for attributes is calculated using the traditional preference space approach, as well as the more recent willingness-to-pay approach.
    Keywords: Economic Theory&Research,Forestry Management,Climate Change Mitigation and Green House Gases,Biodiversity,Environmental Economics&Policies
    Date: 2015–06–09
  2. By: Rodrigo Lluberas (Banco Central del Uruguay)
    Abstract: A number of changes in the payment system have taken place over the last couple of years that are likely to change dramatically how households pay for their purchases in Uruguay. We use a household expenditure survey with detailed data on household demographics and transaction characteristics to estimate a multiple choice model of household payment instrument use. We find that not including transaction characteristics results in bias estimates of household characteristics effects. Indeed, we find that once we include transaction characteristics, income and age play a minor role in explaining household payment instrument choice in Uruguay
    Keywords: payment instruments, consumer behavior, multinomial logit model
    JEL: D12 E41 G20
    Date: 2014
  3. By: Orhan Dagli (Eastern Mediterranean University, North Cyprus); Glenn P. Jenkins (Queen’s University, Canada and Eastern Mediterranean University, North Cyprus)
    Abstract: We employ a choice experiment in order to estimate consumers’ willingness to pay for improvements in mobile services, focusing on 4G upgrades and roaming services. The attributes of an improved mobile service that we investigate in our experiment are: increased mobile internet speed (possible with 4G), unlimited mobile internet use, improved quality (possible with 4G) and unrestrained use in two neighbouring countries (unrestrained roaming). The results indicate that people value unrestrained roaming services the most. Increased speed and unlimited use attributes are next, and are similarly significant at the 1% level. The impact of improved quality is statistically insignificant at the 5% level, suggesting that consumers are content with the current level of quality they receive with 3G. We conclude that bilateral roaming regulation between governments is more valuable than 4G investments.
    Keywords: Mobile telecommunication services; choice experiment; willingness to pay; consumer preferences; 4G; roaming
    JEL: C5 D12 L96
    Date: 2015–05
  4. By: Iimi,Atsushi; Humphreys,Richard Martin; Melibaeva,Sevara
    Abstract: Agglomeration economies are among the most important factors in increasing firm productivity. However, there is little evidence supportive of this in Africa. Using the firm registry database in Tanzania, this paper examines a new application of the logit approach with two empirical issues taken into account: spatial autocorrelation and endogeneity of infrastructure placement. The paper finds significant agglomeration economies. It is also found that firms are more likely to be located where local connectivity and access to markets are good. The paper finds that dealing with infrastructure endogeneity and spatial autocorrelation in the empirical model is important. According to the exogeneity test, infrastructure variables are likely endogenous. The spatial autoregressive term is significant. As expected, therefore, there are positive externalities of firm location choice around the neighboring areas.
    Date: 2015–06–15

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