Abstract
Since the work of Bishop and Heberlein, a number of contingent valuation experiments have appeared involving discrete responses which are analyzed by logit or similar techniques. This paper addresses the issues of how the logit models should be formulated to be consistent with the hypothesis of utility maximization and how measures of compensating and equivalent surplus should be derived from the fitted models. Two distinct types of welfare measures are introduced and then estimated from Bishop and Heberlein's data.
Original language | English (US) |
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Pages (from-to) | 332-341 |
Number of pages | 10 |
Journal | American Journal of Agricultural Economics |
Volume | 66 |
Issue number | 3 |
DOIs | |
State | Published - Aug 1984 |
Externally published | Yes |
Keywords
- Compensating surplus
- Contingent valuation
- Equivalent surplus
- Logit
- Outdoor recreation benefits
- Probit
ASJC Scopus subject areas
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics