Semi-parametric discrete choice measures of willingness to pay

AMS Citation:
Huang, J. -C., D. W. Nychka, and V. K. Smith, 2008: Semi-parametric discrete choice measures of willingness to pay. Economics Letters, 101, 91-94, doi:10.1016/j.econlet.2008.06.010.
Date:2008-10-01
Resource Type:article
Title:Semi-parametric discrete choice measures of willingness to pay
Abstract: A semi-parametric discrete choice method is proposed to recover welfare measures from individual choice data. The estimation procedure and properties of the proposed welfare estimator are discussed. The proposed method is compared with the traditional binary choice models. An application that measures benefits of recreation trips is presented. Our results suggest that the proposed semi-parametric method adds flexibility to the discrete choice modeling and provides a more precise benefit measure than the traditional parametric methods.
Subject(s):Discrete choice methods, Nonparametric regression, Willingness to pay, Cubic smoothing splines
Peer Review:Refereed
Copyright Information:NOTICE: This is the author's version of a work accepted for publication by Elsevier. Changes resulting from the publishing process, including peer review, editing, corrections, structural formatting and other quality control mechanisms, may not be reflected in this document. Changes may have been made to this work since it was submitted for publication.
OpenSky citable URL: ark:/85065/d7k35w6s
Publisher's Version: 10.1016/j.econlet.2008.06.010
Author(s):
  • Ju-Chin Huang
  • Douglas Nychka - NCAR/UCAR
  • V. Smith
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