nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2016‒08‒21
three papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. The impact of trust, risk and disaster exposure on microinsurance demand: Results of a DCE analysis in Cambodia By Fiala, Oliver; Wende, Danny
  2. Ecotourism in the Bolivian Amazon: an attribute analysis By Carlos Solis; Felipe Vásquez Lavín; Roberto Ponce Oliva; Dragana Bojovic
  3. The Welfare Effects of Single Rooms in German Nursing Homes: A Structural Approach By Herr, A.; Saric, A.

  1. By: Fiala, Oliver; Wende, Danny
    Abstract: Natural disasters are increasing in frequency and intensity and have devastating impacts on individuals, both humanitarian and economic, particularly in developing countries. Microinsurance is seen as one promising instrument of disaster risk management, however the level of demand for respective projects remains low. Using behavioural games and a discrete choice experiment, this paper analyses the demand for hypothetical microinsurance products in rural Cambodia and contributes significant household level evidence to the current research. A general preference for microinsurance can be found, with demand significantly affected by price, provider, requirements for prevention and combinations with credit. Furthermore, financial literacy, risk aversion, levels of trust and previous disaster experience impact the individual demand for flood insurance in rural Cambodia.
    Keywords: microinsurance,trust,risk,discrete choice experiment,Cambodia
    JEL: Q10 Q50 Q54 O10 C25
    Date: 2016
  2. By: Carlos Solis; Felipe Vásquez Lavín; Roberto Ponce Oliva; Dragana Bojovic (School of Business and Economics, Universidad del Desarrollo)
    Abstract: At global scale, the relevance of tourism as an economic activity has been increasing in recent years; while in Bolivia, the activity showed sustained growth during the period 2000-2007. Among the different tourism activity types, ecotourism, and other types of allegedly sustainable tourism initiatives are gaining greater popularity. This paper analyzes the ecotourism market in a region characterized by the presence of indigenous communities within the Bolivian Amazon. The analysis includes the tourism demand characteristics, using choice experiments, as well as the expectations about the tourist services that indigenous communities would like to provide. The main conclusion of our study is that there is a gap between what the indigenous communities want to offer and what visitors actually demand
    Keywords: Ecotourism, Economic activity, Bolovian Amazon
    Date: 2016–08
  3. By: Herr, A.; Saric, A.
    Abstract: We analyze the welfare effects of single rooms in German nursing homes using a large panel dataset containing information on prices, residents, and facility characteristics for the years 2007 and 2009. We estimate a one-level nested logit model of demand and, based on the model of bargaining between payers and providers, recover the marginal costs and markups. We then analyze a counterfactual scenario under which only single rooms are offered. According to our estimates, if no corresponding total capacity changes occur, this policy increases consumer surplus by 1.8% and providers’ variable profits by 5.1%. However, under the scenario of reduced capacities, where double rooms are simply transformed into single rooms, consumer surplus decreases by 6.6% and providers’ variable profits by 16.2%. To ensure the positive welfare effects of a single room policy, the supply of nursing home places must be secured by investing in new facilities.
    Keywords: single rooms; nursing homes; policy simulation; structural models; bargaining;
    JEL: I11 I18 L13 L51
    Date: 2016–08

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