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on Discrete Choice Models |
By: | Luigi Guiso (Einaudi Institute for Economics and Finance (EIEF) and CEPR); Tullio Jappelli (University of Naples Federico II, CSEF, and CEPR) |
Abstract: | We implement a survey experiment to study whether awareness of the consequences of hydrogeological risk affects people’s willingness to fight it. To do so, we leverage a representative panel of 5, 000 Italian individuals interviewed at quarterly frequency, starting in October 2023. We elicit survey participants’ willingness to contribute to a public fund to finance investment to secure areas exposed to hydrogeological risk under different information treatments. We find that disclosing information about the consequences of hydrogeological risk causes individuals to increase both support for public funding and individual willingness to pay for the policy. Compared to the control group, individuals exposed to the treatment were 9 percentage points more likely to contribute to the fund and more willing to contribute an additional €29. Applying the information treatment to the whole working age population could raise as much as €0.26 billion per year. We provide evidence that individual willingness to pay depends on individual knowledge that the success of the policy depends critically on the willingness to pay of other citizens. |
Keywords: | Natural Disasters; Willingness to Pay; Insurance. |
JEL: | H31 H2 H23 |
Date: | 2024–06–24 |
URL: | https://d.repec.org/n?u=RePEc:sef:csefwp:723&r= |
By: | Sukhgeet Kaur; Michael G. Pollitt |
Keywords: | Agriculture, energy water nexus, electricity, discrete choice, Punjab, India |
JEL: | O13 Q1 Q4 Q5 Q12 Q24 Q25 Q28 Q48 Q57 |
Date: | 2024–06 |
URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2406&r= |
By: | Miao, Yiyuan; Swallow, Brent M.; Goddard, Ellen W.; Sheng, Jiping |
Keywords: | Food Consumption/Nutrition/Food Safety, Marketing, Environmental Economics And Policy |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343830&r= |
By: | Kang, Qi; McCallister, Donna; Fischer, Laura; Badruddoza, Syed; Gao, Long |
Keywords: | Agribusiness, Consumer/ Household Economics, Demand And Price Analysis |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343888&r= |
By: | Katungi, Enid M.; Larochelle, Catherine; Magreta, Ruth; Banda, Arnold |
Keywords: | International Development, Food Consumption/Nutrition/Food Safety |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343995&r= |
By: | Cao, Ting; House, Lisa A.; Gao, Zhifeng; Wang, Yu |
Keywords: | Food Consumption/Nutrition/Food Safety, Marketing |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343906&r= |
By: | Sandoval M, Luis A.; Lopez, María J.; Mejia, William A.; Morales, Sarahi D.; Mamani Escobar, Brenda A. |
Keywords: | Institutional And Behavioral Economics, Marketing, Environmental Economics And Policy |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343714&r= |
By: | Wilfried Youmbi |
Abstract: | The Random Utility Model (RUM) is the gold standard in describing the behavior of a population of consumers. The RUM operates under the assumption of transitivity in consumers' preference relationships, but the empirical literature has regularly documented its violation. In this paper, I introduce the Random Preference Model (RPM), a novel framework for understanding the choice behavior in a population akin to RUMs, which preserves monotonicity and accommodates nontransitive behaviors. The primary objective is to test the null hypothesis that a population of rational consumers generates cross-sectional demand distributions without imposing constraints on the unobserved heterogeneity or the number of goods. I analyze data from the UK Family Expenditure Survey and find evidence that contradicts RUMs and supports RPMs. These findings underscore RPMs' flexibility and capacity to explain a wider spectrum of consumer behaviors compared to RUMs. This paper generalizes the stochastic revealed preference methodology of McFadden & Richter (1990) for finite choice sets to settings with nontransitive and possibly nonconvex preference relations. |
Date: | 2024–06 |
URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.13969&r= |
By: | Sukhgeet Kaur; Michael G. Pollitt |
Keywords: | Renewable energy, solar pumps, feeder level solarisation, energy water nexus, energy subsidies, irrigation water, electricity, groundwater depletion, Punjab |
JEL: | Q1 Q20 Q25 Q42 Q58 O13 O38 P48 |
Date: | 2024–06 |
URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2408&r= |
By: | Sukhgeet Kaur; Michael G. Pollitt |
Keywords: | Agriculture, energy water nexus, entitlement, incentive, groundwater, irrigation, electricity consumption, paddy, subsidy, electricity pricing, discrete choice, Punjab |
JEL: | O13 Q1 Q4 Q5 Q12 Q24 Q25 Q28 Q48 Q57 |
Date: | 2024–06 |
URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2407&r= |
By: | Bajgain, Pralhad; Rihn, Alicia; Zaring, Caitlin; Eckelkamp, Liz |
Keywords: | Agribusiness, Marketing, Institutional And Behavioral Economics |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343950&r= |
By: | Moss, Logan; McFadden, Brandon R.; Adhikari, Saroj; Nalley, Lawton Lanier; Wilson, Norbert L.W. |
Keywords: | Agribusiness, Marketing, Food Consumption/Nutrition/Food Safety |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343846&r= |
By: | Lemken, Dominic; Simonetti, Aline; Heinke, Gloria; Estevez, Ana |
Keywords: | Marketing, Consumer/ Household Economics |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343537&r= |
By: | Michel Beine; Vincent Fromentin; Javier Sánchez Bachiller |
Abstract: | An extensive literature has documented the incentive effect of emigration prospects in terms of human capital accumulation in origin countries. Much less attention has been paid to the impact on specific educational choices. We provide some evidence from the behavior of students at the University of Lorraine that is located in the northeast of France and close to Luxembourg, a booming economy with attractive work conditions. We find that students who paid attention to the foreign labor market at the time of enrollment tend to choose topics that lead to occupations that are highly valued in Luxembourg. These results hold when accounting for heterogeneous substitution patterns across study fields through the estimation of advanced discrete choice models. Incentive effects of emigration prospects are also found when accounting for the potential endogeneity of the interest for the foreign labor market using a control function approach based on the initial locations of these students at the time of enrollment. Consistently, students showing no attention to the foreign labor market are not subject to the incentive effect of emigration prospects. |
Keywords: | brain gain, emigration prospects, educational choices, discrete choice modelling, labor markets |
JEL: | C25 F22 J61 |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11158&r= |
By: | Yoo, Juyoung; Penn, Jerrod; Fannin, James Matthew; Hu, Wuyang |
Keywords: | Environmental Economics And Policy, Marketing, Consumer/ Household Economics |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343989&r= |
By: | Ayinde, Opeyemi E.; Oyedeji, Oluwafemi A.; Omotesho, Kemi; Abdoulaye, Tahirou; Bankole, Folusho; Ayinde, Love J. |
Keywords: | Resource/Energy Economics And Policy, Risk And Uncertainty, Environmental Economics And Policy |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343828&r= |
By: | Daniele Spinelli (University of Milano-Bicocca) |
Abstract: | Spatial regressions can be estimated in Stata using the spregress, spxtregress, and spivregress commands. These commands allow users to Ft spatial autoregressive models in cross-sectional and panel data. They are designed to estimate regressions with continuous dependent variables. The spatbinary command now allows Stata users to Ft spatial logit and probit models, which are important models in applied econometrics. |
Date: | 2024–05–09 |
URL: | https://d.repec.org/n?u=RePEc:boc:isug24:12&r= |
By: | Mamani Escobar, Brenda A.; Carpio, Carlos E.; Simpson, Catherine; Singh, Sukhbir; Thompson, Leslie; Rueda Kunz, Dario |
Keywords: | Food Consumption/Nutrition/Food Safety |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343963&r= |
By: | Hu, Jinhua; Mu, Fan; Jiang, Xinling; Wu, Zhong'an; Olasehinde, Toba; Fan, Yubing; Wang, Tong |
Keywords: | Production Economics, Environmental Economics And Policy, Agricultural And Food Policy |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343634&r= |