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Controlling for the effects of information in a public goods discrete choice model

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Hanley_2014_ERE_Controlling_CC_BY.pdf (214.3Kb)
Date
03/2016
Author
Czajkowski, Mikolaj
Hanley, Nicholas David
LaRiviere, Jacob
Keywords
Information effects
Uncertainty
Discrete Choice modelling
Combined datasets
HB Economic Theory
G Geography (General)
NDAS
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Abstract
This paper develops a reduced form method of controlling for differences in information sets of subjects in public good discrete choice models, using stated preference data. The main contribution of our method comes from accounting for the effect of information provided during a survey on the mean and the variance of individual-specific scale parameters. In this way we incorporate both scale heterogeneity as well as observed and unobserved preference heterogeneity to investigate differences across and within information treatments. Our approach will also be useful to researchers who want to combine stated preference data sets while controlling for scale differences. We illustrate our approach using the data from a discrete choice experiment study of a biodiversity conservation program and find that the mean of individual-specific scale parameters and its variance in the sample is sensitive to the information set provided to the respondents.
Citation
Czajkowski , M , Hanley , N D & LaRiviere , J 2016 , ' Controlling for the effects of information in a public goods discrete choice model ' , Environmental and Resource Economics , vol. 63 , no. 3 , pp. 523-544 . https://doi.org/10.1007/s10640-014-9847-z
Publication
Environmental and Resource Economics
Status
Peer reviewed
DOI
https://doi.org/10.1007/s10640-014-9847-z
ISSN
0924-6460
Type
Journal article
Rights
© The Author(s) 2014. This article is distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) which permits any use, distribution, and reproduction in any medium, provided the original author(s) and the source are credited.
Description
Data collection was funded as part of the EU Framework 6 project “Hunting for Sustainability”.
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  • University of St Andrews Research
URI
http://hdl.handle.net/10023/5918

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