nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2023‒01‒23
four papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Consumer Ethnocentrism on the Market for Local Products: Determinants of Consumer Behaviors By Wojciechowska-Solis, Julia
  2. The Morbidity Costs of Air Pollution through the Lens of Health Spending in China By Zhang, Xin; Zhang, Xun; Liu, Yuehua; Zhao, Xintong; Chen, Xi
  3. Causal identification with subjective outcomes By Leonard Goff
  4. Correcting Consumer Misperceptions about CO2 Emissions By Taisuke Imai; Davide D. Pace; Peter Schwardmann; Joël van der Weele; Davide Domenico Pace

  1. By: Wojciechowska-Solis, Julia
    Abstract: The aim of the study was to determine the attitudes and ethnocentric behaviors of consumers on the local food market. The survey also included consumers’ purchasing channels, which helped determine the specifics of local product distribution. The criterion for classifying the respondent into the research sample was to indicate the economic motives of consumer ethnocentrism as a factor in the purchase decision. 1, 009 correctly completed questionnaires were accepted for analysis. Descriptive statistics and the U Mann–Whitney test were used in the analyses. The results made it possible to determine the products appreciated by respondents, such as eggs, dairy products, and groats. Local alcoholic beverages in the categories “local wines” and “craft beers” were appreciated more by men. The respondents had the lowest interest in oils produced locally. Among the features with which consumers associate local food are producer identification, freshness, good taste, and affordability. Consumers take advantage of short supply chains such as direct sales by the producer or take the opportunity to buy products at local events or thematic trips such as the culinary trail. Consumers are able to accept a price increase of 10–15%, with larger increases they start looking for cheaper substitutes. In conclusion it was stated that the market for local products is a source of support for the local economy, therefore the authorities should create conditions for its development through undertaking appropriate measures promoting local products.
    Keywords: Consumer/Household Economics, Food Consumption/Nutrition/Food Safety
    Date: 2022–12–22
  2. By: Zhang, Xin; Zhang, Xun; Liu, Yuehua; Zhao, Xintong; Chen, Xi
    Abstract: This study is one of the first investigating the causal evidence of the morbidity costs of fine particulates (PM2.5) for all age cohorts in a developing country, using individual-level health spending data from a basic medical insurance program in Wuhan, China. Our instrumental variable (IV) approach uses thermal inversion to address potential endogeneity in PM2.5 concentrations and shows that PM2.5 imposes a significant impact on healthcare expenditures. The 2SLS estimates suggest that a 10 μg/m3 reduction in monthly average PM2.5 leads to a 2.36% decrease in the value of health spending and a 0.79% decline in the number of transactions in pharmacies and healthcare facilities. Also, this effect, largely driven by the increased spending in pharmacies, is more salient for males and children, as well as middle-aged and older adults. Moreover, our estimates may provide a lower bound to individuals' willingness to pay, amounting to CNY 43.87 (or USD 7.09) per capita per year for a 10 μg/m3 reduction in PM2.5.
    Keywords: air quality, health spending, willingness to pay, China
    JEL: Q51 Q53 I11 I31
    Date: 2023
  3. By: Leonard Goff
    Abstract: Many survey questions elicit responses on ordered scales for which the definitions of the categories are subjective, possibly varying by individual. This paper clarifies what is learned when these subjective reports are used as an outcome in regression-based causal inference. When a continuous treatment variable is statistically independent of both i) potential outcomes; and ii) heterogeneity in reporting styles, a nonparametric regression of numerical subjective reports on that variable uncovers a positively-weighted linear combination of local causal responses, among individuals who are on the margin between adjacent response categories. Though the weights do not aggregate to unity, the ratio of regression derivatives with respect to two such explanatory variables remains quantitatively meaningful. When results are extended to discrete regressors (e.g. a binary treatment), different weighting schemes apply to different regressors, making a comparison of their magnitudes more difficult. I obtain a partial identification result for ratios that holds when there are many categories and individual reporting functions are linear. I also provide results for identification using instrumental variables.
    Date: 2022–12
  4. By: Taisuke Imai; Davide D. Pace; Peter Schwardmann; Joël van der Weele; Davide Domenico Pace
    Abstract: Policy makers put great emphasis on the role of information about carbon emissions in achieving sustainable decisions by consumers. We conduct two studies to understand the optimal targeting of such information and its effects. First, we conduct an incentivized and representative survey among US consumers (N = 1, 022) to investigate awareness of climate impact and willingness to mitigate it. We find a large variation in the perceptions of the carbon emissions of different consumption behaviors, with an overall tendency to underestimate these emissions. We also find a positive but highly concave willingness to mitigate climate impact. We combine elicited misperceptions and willingness to mitigate in a structural model that delivers sharp predictions about where to best target information campaigns. In an experiment with actual consumption decisions (N = 2, 081), we then test for the effect of CO2 information on the demand for beef, a product predicted to be a productive target for information. Correcting misperceptions has no effect on the demand for beef, both in absolute terms and compared to a predictably less productive target of information, i.e. the demand for poultry. Our dataset allows us to hone in on the underlying reason for this null effect.
    Keywords: climate change, carbon emissions, information provision, consumer behavior
    JEL: C81 C93 D84 Q54
    Date: 2022

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