nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2019‒12‒09
eleven papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Consumer Preferences for Sustainable and Healthy Lifestyle: Five-Country Discrete Choice Experiments By Milan Scasny; Iva Zverinova; Vojtech Maca
  2. Nature-Based, Structural, or Soft Measures of Adaptation? Preferences for Climate Change Adaptation Measures to Limit Damages from Droughts By Milan Scasny; Iva Zverinova; Alistair Hunt
  3. What are the essential qualities of domestic biogas plants? Selecting attributes for a discrete choice experiment By Mailu, Stephen K.; Nwogwugwu, Collins U.; Kinusu, Kevin; Njeru, Peterson; Rewe, Thomas
  4. Preference for Elder Policy: Evidence from a Large-scale Conjoint Survey Experiment By KAWATA Keisuke; YIN Ting; YOSHIDA Yuichiro
  5. Examining return visitation and the monetary value of participatory sport events: The role of attribute non-attendance By John C. Whitehead; Pamela Wicker
  6. Estimating Family Preference for Home Elderly-care Services: Large-scale Conjoint Survey Experiment in Japan By KANEKO Shinji; KAWATA Keisuke; YIN Ting
  7. lclogit2: An enhanced module to estimate latent class conditional logit models By Yoo, Hong Il
  8. Proceedings: 2nd International Conference on Food and Agricultural Economics: AN ECONOMETRIC ANALYSIS OF WILLINGNESS-TO-PAY FOR SUSTAINABLE DEVELOPMENT: A CASE STUDY OF LAKE URMIA By Saleh, Iraj; Meshkat, Reza; Yazdani, Saeed; Rafiee, Hamed
  9. Modeling farmers’ willingness to pay for stress tolerance in maize in northern Nigeria: how does the states of gains and losses matter? By Bello, Muhammad; Abdoulaye, Tahirou; Abdulai, Awudu; Wossen, Tesfamicheal; Menkir, Abebe
  10. Willingness to Pay for Hexanal technology in Banana production in Meru County, Kenya By Kahwai, Jane; Mburu, John; Hutchinson, Margaret; Oulu, Martin
  11. Data-driven transformations and survey-weighting for linear mixed models By Patricia Dörr; Jan Pablo Burgard

  1. By: Milan Scasny (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic; Charles University Environment Centre, José Martího 407/2, 162 00, Prague, Czech Republic); Iva Zverinova (Charles University Environment Centre, José Martího 407/2, 162 00, Prague, Czech Republic); Vojtech Maca (Charles University Environment Centre, José Martího 407/2, 162 00, Prague, Czech Republic)
    Abstract: Consumers preferences for sustainable and healthier lifestyle are examined through stated preference discrete choice experiments. Specifically, we introduce several choice situations in which each respondent was asked to choose the best from three lifestyles presented, including the respondent’s current lifestyle. Each lifestyle alternative is described by a different diet, health risks, and monetary costs. Diet is described by a number of portions of five different food items eaten per week (fruits and vegetables, meat, fish, legumes, and confectionery, ice-cream and sugar-sweetened drinks). Using a split-sample treatment, lifestyles are then described by either physical activities or environmental impacts (in kg of CO2 emissions). We also examine the effect of self-affirmation and information about the environmental impacts provided separately or in a combination. A non-linear preference is tested for increasing versus decreasing cost of food expenditures. Preferences are analysed using an original stated preference survey conducted in five EU countries (the Czech Republic, Latvia, Portugal, Spain, and in the United Kingdom) in summer 2018, with dataset consisting of 10,288 observations. We find that importance of lifestyle attributes varies across the countries and information treatments. The cost is significant in every country, indicating that lower costs lead to a higher probability of choosing the alternative lifestyle. Reducing health risks and environmental impact motivated respondents to change their lifestyle, even though reducing 1 kg CO2 due to food consumption a week is valued 3–6 times less than reducing cardiovascular risk by one percent. Still, the implied WTP for a tone CO2 abatement is in a range of 300–1,200 Euro and VSC of cardiovascular disease lies between 4,000 and 35,000 Euro, depending on country and DCE variant. Increasing physical activity increases the likelihood of changing lifestyle only in Latvia and Portugal. Most respondents prefer to keep eating meat and eliminating meat or fish from food consumption is associated with large dis-benefit. Respondents also prefer to increase portions of health-improving vegetables and fruits, however, this is not the case of pulses.
    Keywords: Discrete choice experiment, willingness to pay, sustainable lifestyle, healthy diets, consumer preferences, physical activity, health risk, CO2 emissions
    JEL: D12 H31 Q51 R22
    Date: 2019–06
  2. By: Milan Scasny (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic; Charles University Environment Centre, José Martího 407/2, 162 00, Prague, Czech Republic); Iva Zverinova (Charles University Environment Centre, José Martího 407/2, 162 00, Prague, Czech Republic); Alistair Hunt (University of Bath, Bath, BA2 7AY, United Kingdom)
    Abstract: The objective of this paper is to examine preferences of citizens of three European countries regarding various adaptation plans and measures to limit damages from drought under climate changes. For this purpose, we conducted a survey in the Czech Republic, Italy, and the United Kingdom. We utilize discrete choice experiments and estimate marginal willingness-to-pay for a variety of technical, nature-based, and non-structural soft measures. The results differ substantially between countries and across the adaptation measures with the mean willingness to pay to be in a range of 5 to 26 PPS EUR. However, there is a large heterogeneity in willingness-to-pay across and within the countries. Rainwater harvesting is found to be one of the most preferred measures in each of the three countries, followed by small water reservoirs and wetlands in the Czech Republic, large reservoirs in the UK, and tax relief on water efficient technologies in Italy. We gather data on the perceived effectiveness and perceived base level of implementation of the various measures to explain the differences in preferences across populations. We identify three distinct latent classes implying large, modest, and even negative willingness to pay estimates in each three countries. The results can be used to inform policy makers about the acceptability of policy mixes.
    Keywords: Climate change adaptation, discrete choice experiments, willingness to pay, policy acceptability, droughts, technical measures, nature-based (green) measures, soft non-structural measures
    JEL: Q54 Q51
    Date: 2019–06
  3. By: Mailu, Stephen K.; Nwogwugwu, Collins U.; Kinusu, Kevin; Njeru, Peterson; Rewe, Thomas
    Keywords: Research Methods/ Statistical Methods
    Date: 2019–09
  4. By: KAWATA Keisuke; YIN Ting; YOSHIDA Yuichiro
    Abstract: The paper estimates the preference for elder policy by using a large scale conjoint survey experiment. While the conjoint survey design allows us to evaluate multiple policy topics, the main interest is mixed elderly care. Methodologically, the paper proposes a parallel design for additional attributes, which allows us to identify the AMCE, conditional on the respondent's policy concern. Our results consistently show positive support for mixed elderly care.
    Date: 2019–11
  5. By: John C. Whitehead; Pamela Wicker
    Abstract: The purposes of this study are to examine the effect of training satisfaction and weather on the intention to revisit a sport event and to assign a monetary value to these event attributes considering attribute non-attendance. It uses survey data from four sport events in the United States in 2017 and 2018. Respondents answered a series of hypothetical scenarios that randomly assign travel costs per mile and travel distances for the return visit along with weather forecasts and training satisfaction. Logit models estimated with and without attribute non-attendance reveal the extent of preference heterogeneity and respondent attention to trip attributes. The monetary value of training satisfaction and favorable weather is obtained by converting willingness-to-travel into willingness-to-pay estimates based on travel costs. The results indicate that attribute non-attendance is an issue in each data set and that willingness-to-pay for event attributes differs across event and time. Key Words: Intention to revisit; Monetary valuation; Sport event; Willingness-to-pay; Willingness-to-travel
    Date: 2019
  6. By: KANEKO Shinji; KAWATA Keisuke; YIN Ting
    Abstract: Elderly care services have attracted attention in many aging countries. However, the relative importance of service attributes has not been well evaluated. This paper estimates the consumer surplus of multi-attribute elderly care services at home, which allows us to evaluate them from the social welfare perspective. We propose a new empirical approach combining a fully-randomized conjoint survey experiment and the non-parametric rational choice model. Our survey is for Japanese respondents aged 40-59 and shows that expansions of service contents significantly increases the consumer surplus. Additionally, the surplus gain is completely heterogeneous; while many respondents have no surplus gains, the average surpluses are of significant size among remaining respondents.
    Date: 2019–11
  7. By: Yoo, Hong Il
    Abstract: This paper describes Stata command lclogit2, an enhanced version of lclogit (Pacifico and Yoo, 2013). Like its predecessor, lclogit2 uses the Expectation-Maximization (EM) algorithm to estimate latent class conditional logit (LCL) models. But it executes the EM algorithm's core algebraic operations in Mata, and runs considerably faster as a result. It also allows linear constraints on parameters to be imposed in a more convenient and flexible manner. It comes with parallel command lclogitml2, a new standalone program that uses gradient-based algorithms to estimate LCL models. Both lclogit2 and lclogitml2 are supported by a new postestimation tool, lclogitwtp2, that evaluates willingness-to-pay measures implied by estimated LCL models.
    Keywords: lclogit2, lclogitml2, lclogitwtp2, lclogit, mixlogit, fmm, finite mixture, mixed logit
    JEL: C35 C61 C87
    Date: 2019–11–10
  8. By: Saleh, Iraj; Meshkat, Reza; Yazdani, Saeed; Rafiee, Hamed
    Abstract: Lake Urmia is the largest lake inside Iran, one of the most important salt lakes in the world and one of the saturated salt lakes in the world. It is similar to the Great Salt Lake in the United States and the Dead Seain Jordan. Having beautiful beaches and many tourist islands, a place with water sports such as swimming, boating and skiing became this lake to a beautiful place and tourist attraction. The purposeof this studyisestimating therecreational value ofLake Urmia. For estimating recreation function the contingent valuation method (single bounded dichotomous choice) was considered and a logitmodelwas usedtoestimate thewillingness to pay. Datawerecollectedusing questionnaire in Azerbaijan province. The results showed that recreational willingness to pay for each visit was 0.48 dollars annually. With regards to the numberof visitors from Lake Urmia,recreational value of thelakewasestimated at 756000 dollars in a year. Preservation of the lakecanplayan important rolein attracting domestic and foreign tourists. Considering sustainable development goals of the country, this lake could also create economic benefits, business expansion and employment in the region.
    Keywords: Environmental Economics and Policy, Institutional and Behavioral Economics
    Date: 2018–04
  9. By: Bello, Muhammad; Abdoulaye, Tahirou; Abdulai, Awudu; Wossen, Tesfamicheal; Menkir, Abebe
    Keywords: Research Methods/ Statistical Methods, Crop Production/Industries
    Date: 2019–09
  10. By: Kahwai, Jane; Mburu, John; Hutchinson, Margaret; Oulu, Martin
    Keywords: Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies
    Date: 2019–09
  11. By: Patricia Dörr; Jan Pablo Burgard
    Abstract: Many variables that social and economic researchers seek to analyze through regression analysis violate normality assumptions. A standard remedy in that case is the logarithmic transformation. However, taking logarithms is not always sufficient to reestablish model assumptions. A more general approach is to determine a family of transformations and to estimate the adequate parameter of such a transformation. This can also be done in mixed effects models, which can account for unobserved heterogeneity in grouped data. When the analyzed data is gathered from a complex survey whose design is informative for the model - which is difficult to exclude a priori - a bias on the transformed linear mixed models can occur. As the bias affects the transformation parameter, too, the distortion to the parameters in the population is even more problematic than in standard regression. In standard regression, survey weights are used to account for the design. To the best of our knowledge, none of the existing algorithms allows to include survey weights in these transformed linear mixed models. This paper adapts a recently suggested algorithm to include survey weights to Box-Cox or dual transformed mixed models. A simulation study demonstrates the need to account for informative survey design.
    Date: 2019

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