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on Discrete Choice Models |
| By: | Nabila Arfaoui (University Catholic of Lyon, ESDES); Amandine Gnonlonfin (Université de Nice/IMREDD) |
| Abstract: | The study collects original monetary estimates for Nature Based Solutions (NBS) and benefits, with restoration approach in a basin context. A database of 187 monetary estimates is constructed to perform the first meta-analysis, which will assess how individuals value the NBS restoration measures and their benefits. We find that individuals value, in particular, global climate regulation, local environmental regulation, recreational activities, and habitat and biodiversity benefits. We find also that NBS measures aimed at floodplains and river streams are more highly valued. The results of this study suggest that the Willingness-to-pay (WTP) is weakly influenced by the methodological variables. While the contingent valuation method affects the WTP compared to studies using choice experiments, the payment and econometric method means have only a marginal effect. Survey modes are never significant. Finally, studies on the US and Europe country contexts show higher WTP than those conducted in Asia. |
| Keywords: | Nature Based Solution (NBS), Meta-Analysis, Ecosystem services, Willingness To Pay |
| JEL: | Q51 Q57 O13 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2019.09&r=all |
| By: | Nicolas Jacquemet (PSE - Paris School of Economics, UP1 - Université Panthéon-Sorbonne, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Stephane Luchini (Aix-Marseille School of Economics [Aix-Marseille Université] - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - Centre de la Vieille Charité [Aix-Marseille Université]); Jason Shogren (UW - University of Wyoming); Verity Watson (Health Economics Research Unit - University of Aberdeen) |
| Abstract: | Using discrete choices to elicit preferences is a major tool to help guide public policy. Although Discrete Choice Experiment (DCE) remains by far the most popular mechanism used to elicit preferences, its reliability still is questionable. Using an induced value experimental design, we show that standard benchmarks achieve no more than 56% (hypothetical answers with no monetary incentives) to 60% (real monetary incentives) of payoff maximizing choices. Herein we demonstrate that having respondents sign a the truth-telling oath reduces non-payoff maximizing choices by nearly 50% relative to these benchmarks. The explicit and voluntary commitment to honesty improved decisions. Further, we show that it is the explicit commitment to honesty induced by the truth-telling oath improves choices, not just any oath mechanism, i.e., an oath to task or to duty did not improve choices. |
| Keywords: | Discrete Choice Experiments,Stated Preferences,Oath,Truth-telling,External validity,Welfare |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-02136103&r=all |
| By: | Shakeeb Khan (Boston College); Maria Ponomareva (Northern Illinois University); Elie Tamer (Harvard University) |
| Abstract: | We analyze identification in dynamic econometric models of binary choice with fixed effects under general conditions. This class of models is often used in the literature to distinguish between state dependence (invariably referred to in the recent literature as switching costs, inertia or stickiness) and heterogeneity. We first characterize the sharp set for parameters in a dynamic panel of binary choice under conditional stationarity. The identified set can be characterized by a union of convex polyhedrons. We conduct the same exercise under the stronger assumption of conditional exchangeability, and establish its incremental identifying power. We extend our identification approach to study models with more time periods as well. We also provide sufficient conditions for point identification. For inference in cases with discrete regressors, we provide an approach to constructing confidence sets for the identified sets using a linear program that is simple to implement. The paper then provides simulation based evidence on the size and shape of the identified sets in varying designs to illustrate the informational content of different assumptions. We also illustrate the inference approach using a data set on women’s labor supply decisions. |
| Keywords: | Binary Choice, Dynamic Panel Data, Partial Identification |
| JEL: | C22 C23 C25 |
| Date: | 2019–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:979&r=all |
| By: | Laetitia Tuffery (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier) |
| Abstract: | In this article, we estimate how the willingness to pay (WTP) for forest recreational services affects housing choice location based on the random bidding model. We obtain four major original findings: (i) The WTP for urban park proximity is globally non-significant, in contrast to forest area. (ii) When forests are recreational green spaces (defined by surface area), they positively influence the WTP, which is higher for the wealthiest households and those over the age of 45. (iii) When forests are natural protected areas, their influence on the WTP is negative for the least affluent classes but positive for managers and professionals belonging to the 30-45 age group. (iv) Finally, forest facilities such as hiking and biking paths have a positive impact on the WTP for most socio-professional categories (with the exception of managers and professionals) and especially for households under the age of 30. |
| Keywords: | Forest proximity,recreational amenity,random bidding model,heterogeneous preference JEL codes: D44 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02139114&r=all |
| By: | Jan Ditzen (Centre for Energy Economics Research and Policy, Heriot-Watt University) |
| Abstract: | This paper describes how to estimate long run effects in a large heterogeneous panel data model with cross sectional dependence in Stata using the user written command xtdcce2. It builds on Chudik et al. (2016) and explains how to estimate models using the CS-DL and CS-ARDL estimator. In addition it includes a method how to estimate an error correction model. |
| Keywords: | xtdcce2, parameter heterogeneity, dynamic panels, cross section dependence, common correlated effects, pooled mean-group estimator, mean-group estimator, error correction model, ardl, long run coefficients |
| JEL: | C31 C32 C33 C38 C87 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:hwc:wpaper:007&r=all |
| By: | Gizem Kosar (Federal Reserve Bank of New York); Tyler Ransom (Oklahoma University); Wilbert van der Klaauw (Federal Reserve Bank of New York) |
| Abstract: | Residential mobility rates in the U.S. have fallen considerably over the past three decades. The cause of the long-term decline remains largely unexplained. In this paper we investigate the relative importance of alternative drivers of residential mobility, including job opportunities, neighborhood and housing amenities, social networks and housing and moving costs, using data from two waves of the NY Fed’s Survey of Consumer Expectations. Our hypothetical choice methodology elicits choice probabilities from which we recover the distribution of preferences for location and mobility attributes without concerns about omitted variables and selection biases that hamper analyses based on observed mobility choices alone. We estimate substantial heterogeneity in the willingness-to-pay (WTP) for location and housing amenities across different demographic groups, with income considerations, proximity to friends and family, neighbors’ shared norms and social values, and monetary and psychological costs of moving being key drivers of migration and residential location choices. The estimates point to potentially important amplifying roles played by family, friends, and shared norms and values in the decline of residential mobility rates. |
| Keywords: | migration, geographic labor mobility, neighborhood characteristics |
| JEL: | J61 R23 D84 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2019-037&r=all |
| By: | Milad Ghasri; Ali Ardeshiri; Taha Rashidi |
| Abstract: | Relative advantage, or the degree to which a new technology is perceived to be better than an existing technology which is being replaced, has a significant impact on individuals decisions on when, how and to what extent to adopt. An integrated choice and latent variable model is used, in this paper, to explicitly investigate the cognitive process underlying the formation of electric vehicles perceived advantages over the conventional internal combustion engine vehicles. The analysed data is obtained from a stated preference survey including 1,076 residents in New South Wales, Australia. According to the results, the latent component of the model disentangles the perceived advantages across three dimensions of vehicle design, impact on the environment, and safety. These latent variables are interacted with price, driving range and body type, respectively, to capture the impact of perception on preference. The developed model is then used to examine different scenarios, in order to explore the effectiveness of several support schemes. The results show higher probability of adopting electric vehicles for generation Y, compared to generation X and Z. Generation Y is found to be the least sensitive cohort to purchase price, and generation X to be the most sensitive cohort to this attribute. People are more sensitive to incentives for the initial price compared to ongoing incentives for operating costs. Also, offering financial incentives to consumers as a rebate on the purchase price is more effective than allocating the same incentive to manufactories to reduce the purchase price. |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1905.11606&r=all |
| By: | Dannenberg, Astrid; Gallier, Carlo |
| Abstract: | A growing experimental literature studies the endogenous choice of institutions to solve cooperation problems arising in prisoners' dilemmas, public goods games, and common pool resource games. Participants in these experiments have the opportunity to influence the rules of the game before they play the game. In this paper, we review the experimental literature of the last 20 years on the choice of institutions and describe what has been learned about the quality and the determinants of institutional choice. Almost all institutions improve cooperation if they are implemented, but they are not always implemented by the players. Institutional costs, remaining free-riding incentives, and a lack of learning opportunities are the most important barriers. At the individual level, own cooperativeness and beliefs about other players' behavior can be identified as important determinants of institutional choice. Cooperation tends to be higher under endogenously chosen institutions than exogenously imposed institutions. However, a significant share of players fails to implement the institution and they often perform poorly, which is why we cannot conclude that letting people choose is better than enforcing institutions from outside. |
| Keywords: | literature review,experiments,cooperation,public goods,endogenous institutional choice,voting |
| JEL: | C71 C91 C92 D02 D70 H41 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:19021&r=all |
| By: | Astrid Dannenberg (University of Kassel); Carlo Gallier (Leibniz Centre for European Economic Research) |
| Abstract: | A growing experimental literature studies the endogenous choice of institutions to solve cooperation problems arising in prisoners’ dilemmas, public goods games, and common pool resource games. Participants in these experiments have the opportunity to influence the rules of the game before they play the game. In this paper, we review the experimental literature of the last 20 years on the choice of institutions and describe what has been learned about the quality and the determinants of institutional choice. Almost all institutions improve cooperation if they are implemented, but they are not always implemented by the players. Institutional costs, remaining free-riding incentives, and a lack of learning opportunities are the most important barriers. At the individual level, own cooperativeness and beliefs about other players’ behavior can be identified as important determinants of institutional choice. Cooperation tends to be higher under endogenously chosen institutions than exogenously imposed institutions. However, a significant share of players fails to implement the institution and they often perform poorly, which is why we cannot conclude that letting people choose is better than enforcing institutions from outside. |
| Keywords: | Literature review; experiments; cooperation; public goods; endogenous institutional choice; voting |
| JEL: | C71 C91 C92 D02 D70 H41 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201911&r=all |