nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2015‒07‒11
eight papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Using Stated Preference Methods to Design Cost-Effective Subsidy Programs to Induce Technology Adoption. An Application to a Stove Program in Southern Chile By Felipe Vásquez; Walter Gómez; Hugo Salgado; Carlos Chávez
  2. GPs’ implicit prioritization through clinical choices – evidence from three national health services By Riise, Julie; Hole, Arne Risa; Gyrd-Hansen, Dorte; Skåtun, Diane
  3. Public Preferences for Carbon Tax Attributs By Z. Eylem Gevrek; Ayse Uyduranoglu
  4. Willingness-To-Pay For Sporting Success of Football Bundesliga Teams By Pamela Wicker; John C. Whitehead; Bruce K. Johnson; Daniel S. Mason
  5. Household Demand for Housing in Kenya By Muthoka, Sila
  6. Decision-making criteria among European patients: exploring patient preferences for primary care services By Michela Tinelli; Zlatko Nikoloski; Stephanie Kumpunen; Cecile Knai; Radivoje Pribakovic Brinovec; Emily Warren; Katharina Wittgens; Petra Dickmann
  7. Train Commuters' Scheduling Preferences: Evidence from a Large-Scale Peak Avoidance Experiment By Stefanie Peer; Jasper Knockaert; Erik Verhoef
  8. Location choice of German multinationals in the Czech Republic : the importance of agglomeration economies By Hecht, Veronika

  1. By: Felipe Vásquez; Walter Gómez; Hugo Salgado; Carlos Chávez (School of Business and Economics, Universidad del Desarrollo)
    Abstract: We study the design of an economic incentive based program –a subsidy- to induce adoption of more efficient technology in a pollution reduction program in southern Chile. Stated preferences methods, contingent valuation (CV), and choice experiment (CE) are used to estimate the probability of adoption and the willingness to share the cost of a new technology by a household.
    Keywords: Stated preferences, cost-effectiveness, environmental policy, urban pollution, households, contingent valuation, choice experiments.
    Date: 2013–08
  2. By: Riise, Julie (Department of Economics, University of Bergen); Hole, Arne Risa (Department of Economics, University of Sheffield); Gyrd-Hansen, Dorte (COHERE, University of Southern Denmark); Skåtun, Diane (Health Economics Research Unit, University of Aberdeen)
    Abstract: We present results from an extensive discrete choice experiment, which was conducted in three countries (Norway, Scotland, England) with the aim of disclosing stated prescription behaviour in different decision making contexts and across different cost containment cultures. We show that GPs in all countries respond to information about societal costs, benefits and effectiveness, and that they make trade-offs between them. The UK GPs have higher willingness to accept costs when they can prescribe medicines that are cheaper or more preferred by the patient, while Norwegian GPs tend to have higher willingness to accept costs for attributes regarding effectiveness or the doctors’ experience, while. In general there is a lot of heterogeneity also within each country. We discuss the results from the DCE in the light of the GPs two conflicting agency roles and what we know about the incentive structures and cultures in the different countries.
    Keywords: Prioritization; discrete choice Experiments; prescription behavior; GPs
    JEL: D82 I11
    Date: 2015–07–01
  3. By: Z. Eylem Gevrek (Department of Economics, University of Konstanz, Germany); Ayse Uyduranoglu (Istanbul Bilgi University, Turkey)
    Abstract: The impacts of climate change are already visible throughout the world. Recognizing the threats posed by climate change, the Durban Platform, the 17th Session of the Conference of Parties (COP 17), underscores that the global nature of climate change calls for the widest possible cooperation and ambitious action by all countries. A crucial starting point for the design of effective and publicly acceptable policies is to explore public preferences for climate policy instruments. Using a choice experiment, this study investigates public preferences for carbon tax attributes in a developing country context. The results account for heterogeneity in preferences and show that Turkish people prefer a carbon tax with a progressive cost distribution rather than one with a regressive cost distribution. The private cost has a negative effect on the probability of choosing the tax. Earmarking carbon tax revenues increases the public acceptability of the tax. Moreover, there is a preference for a carbon tax that promotes public awareness of climate change.
    Keywords: Carbon taxes, Choice experiment, Latent class model, Mixed logit model, Preferences, Turkey
    JEL: H Q
    Date: 2015–07–08
  4. By: Pamela Wicker; John C. Whitehead; Bruce K. Johnson; Daniel S. Mason
    Abstract: This study shows that fans and people living in the region of 28 Football Bundesliga teams from all three divisions are willing to support their team financially. Survey respondents were asked for their willingness-to-pay to avoid a negative outcome (e.g., relegation) and to achieve a positive outcome (e.g., promotion). Fan bonds are applied as an alternative payment vehicle within the contingent valuation method. The results show that different factors affect the decision to support the team and the actual amount of willingness-to-pay – for attendees and non-attendees. Public goods are particularly relevant for reporting a positive willingness-to-pay. Key Words: Contingent valuation method; Bundesliga; Fan bonds; Public goods; Sporting success; Willingness-to-pay
    JEL: L83 H41
    Date: 2015
  5. By: Muthoka, Sila
    Abstract: Previous studies have established that demand pattern for housing identifies with that of a necessary good. The nature of housing goods consumed is highly heterogeneous in dimensions like ownership, size, location and tenure type. In this study I model the probability of household tenure types in Kenya using Household Budget Survey data. Using a Multinomial Logit Model (MNLM) formulation three tenure, household size and age of the household head emerge as significant predictors of household housing choices. Based on the results, the government and firms can rely on household size and age of the household head to approximate demand for housing services in the various tenure types. Furthermore, the ability to interpolate these variables based on occasional population surveys makes it easier to design mechanisms of matching demand and supply for housing services.
    Keywords: housing, demand for housing, tenure, multinomial logit, hedonic regression
    JEL: D12 R21
    Date: 2015–05–30
  6. By: Michela Tinelli; Zlatko Nikoloski; Stephanie Kumpunen; Cecile Knai; Radivoje Pribakovic Brinovec; Emily Warren; Katharina Wittgens; Petra Dickmann
    Abstract: Background: Health economics preference-based techniques, such as discrete choice experiments (DCEs), are often used to inform public health policy on patients’ priorities when choosing health care. Although there is general evidence about patients’ satisfaction with general-practice (GP) care in Europe, to our knowledge no comparisons are available that measure patients’ preferences in different European countries, and use patients’ priorities to propose policy changes. Methods: A DCE was designed and used to capture patients’ preferences for GP care in Germany, England and Slovenia. In the three countries, 841 eligible patients were identified across nine GP practices. The DCE questions compared multiple health-care practices (including their ‘current GP practice’), described by the following attributes: ‘information’ received from the GP, ‘booking time’, ‘waiting time’ in the GP practice, ‘listened to’, as well as being able to receive the ‘best care’ available for their condition. Results were compared across countries looking at the attributes’ importance and rankings, patients’ willingness-to-wait for unit changes to the attributes’ levels and changes in policy. Results: A total of 692 respondents (75% response rate) returned questionnaires suitable for analysis. In England and Slovenia, patients were satisfied with their ‘current practice’, but they valued changes to alternative practices. All attributes influenced decision-making, and ‘best care’ or ‘information’ were more valued than others. In Germany, almost all respondents constantly preferred their ‘current practice’, and other factors did not change their preference. Conclusion: European patients have strong preference for their ‘status quo’, but alternative GP practices could compensate for it and offer more valued care.
    JEL: J50
    Date: 2014–07
  7. By: Stefanie Peer (VU University Amsterdam, the Netherlands, and Vienna University of Economics and Business, Vienna, Austria); Jasper Knockaert (VU University Amsterdam, the Netherlands); Erik Verhoef (VU University Amsterdam, the Netherlands)
    Abstract: We study the trip scheduling preferences of train commuters in a real-life setting. The underlying data have been collected during large-scale peak avoidance experiment conducted in the Netherlands, in which participants could earn monetary rewards for traveling outside peak hours. The experiment included ca. 1000 participants and lasted for about 6 months. Holders of an annual train pass were invited to join the experiment, and a customized smartphone app was used to measure the travel behavior of the participants. We find that compared to the pre-measurement, the relative share of peak trips decreased by 22% during the reward period, and by 10% during the post-measurement. By combining multiple complementary data sources, we are able to specify and estimate (MNL and panel latent class) departure time choice models. These yield plausible estimates for the monetary values that participants attach to reducing travel time, schedule delays, the number of transfers, crowdedness, and unreliability.
    Keywords: C25; C90; D01; D80; R41
    Date: 2015–07–06
  8. By: Hecht, Veronika (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "This paper analyses the location choice of German investors in the Czech Republic based on a unique dataset covering all Czech companies with a German equity holder in 2010. The identification of the regional determinants of foreign direct investment (FDI) location is an important regional policy issue as FDI is supposed to improve the labour market conditions of the host region. Using a nested logit approach the impact of agglomeration economies, labour market conditions and distance on the location choice decision is investigated. The main result of the paper is that apart from a low distance to the location of the parent company the attractiveness of a Czech district for German investors is mainly driven by agglomeration economies. Besides localisation economies the agglomeration of German companies in a region plays a decisive role. The importance of labour market characteristics differs between investment sectors, sizes and periods." (Author's abstract, IAB-Doku) ((en))
    Keywords: Standortfaktoren, Standortwahl - Determinanten, Herkunftsland, Investitionsverhalten, Auslandsinvestitionen, Arbeitsmarkt, Tschechische Republik, Bundesrepublik Deutschland, Bundesrepublik Deutschland
    JEL: F23 R12 R30
    Date: 2015–07–02

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