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on Discrete Choice Models |
| By: | Victor Champonnois (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - AgroParisTech - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Katrin Erdlenbruch (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - AgroParisTech - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This paper looks at the scope for individual adaptation toflood risk in the South of France. From a survey of 418 respondents in two flood-prone areas, we collected data on the adoption of individual adaptation measures and the willingness to pay for individual and collective measures. First, we study the determinants of adoption and of the willingness to pay. We then compare willingness to pay for individual versus collective measures. We end with a cost-benefit analysis of individual adaptation. Results show a willingness to pay for adaptation measures, although few have yet been adopted. Perceptions of hazards and damage have different influences: the first favours the adoption of measures, the second increases the willingness to pay for measures. Finally, the cost-benefit analysis suggests that completely dry proofing a house up to a certain height may not be economically viable. This calls for the promotion of cheaper and potentially more cost-efficient measures. |
| Keywords: | contingent valuation,cost-benefit analysis,damage mitigation,dichotomous choice,individual adaptation,flood,France,willingness to pay |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-02586069&r=all |
| By: | John K. Dagsvik (Statistics Norway) |
| Abstract: | In many instances the consumer faces choice settings where the alternatives are discrete. Examples include choice between variants of differentiated products, urban transportation modes, residential locations, types of education, etc. So far, a Slutsky equation for discrete choice models has not been derived. In this paper an aggregate Slutsky equation for the discrete case is obtained, which differs in important ways from the corresponding equation in the standard theory of consumer demand. A remarkable feature of the compensated marginal effects in the discrete case is that they are usually not symmetric, as the marginal compensated effects with respect to a price increase versus a price decrease may be different. The description of the analytic formulas is accompanied by several examples of their use: for example, in travel demand and labor supply. |
| Keywords: | Equivalent variation; Compensating variation; Discrete/continuous choice; Slutsky equation; Marginal compensated effects; Price indexes |
| JEL: | C25 C43 D11 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:930&r=all |
| By: | Peters, Felix; Pumplun, Luisa; Buxmann, Peter |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:120853&r=all |
| By: | Andersson, Ola (Department of Economics, Uppsala University); Campos-Mercade, Pol (Copenhagen University); Carlsson, Fredrik (University of Gothenburg); Schneider, Florian (University of Zurich); Wengström, Erik (Lund University) |
| Abstract: | This paper reports the results of a choice experiment designed to estimate the private welfare costs of stay-at-home policies during the COVID-19 pandemic. The study is conducted on a large and representative sample of the Swedish population. The results suggest that the welfare cost of a one-month stay-at-home policy, restricting non-working hours away from home, amounts to 9.1 percent of Sweden's monthly GDP. The cost can be interpreted as 29,600 quality-adjusted life years (QALYs), which roughly corresponds to between 3,700 and 8,000 COVID-19 fatalities. Moreover, we find that stricter and longer lockdowns are disproportionately more costly than more lenient ones. This result indicates that strict stay-at-home policies are likely to be cost-effective only if they slow the spread of the disease much more than more lenient ones. |
| Keywords: | tay-at-home orders; welfare effects; choice experiment |
| JEL: | D62 I18 |
| Date: | 2020–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1340&r=all |
| By: | Andersson, Ola (Department of Economics, Uppsala University); Campos-Mercade, Pol (Department of Economics, Copenhagen University); Carlsson, Fredrik (Department of Economics, University of Gothenburg); Schneider, Florian (Department of Economics, University of Zurich); Wengström , Erik (Department of Economics, Lund University) |
| Abstract: | This paper reports the results of a choice experiment designed to estimate the private welfare costs of stay-at-home policies during the COVID-19 pandemic. The study is conducted on a large and representative sample of the Swedish population. The results suggest that the welfare cost of a one-month stay-at-home policy, restricting non-working hours away from home, amounts to 9.1 percent of Sweden's monthly GDP. The cost can be interpreted as 29,600 quality-adjusted life years (QALYs), which roughly corresponds to between 3,700 and 8,000 COVID-19 fatalities. Moreover, we find that stricter and longer lockdowns are disproportionately more costly than more lenient ones. This result indicates that strict stay-at-home policies are likely to be cost-effective only if they slow the spread of the disease much more than more lenient ones. |
| Keywords: | Stay-at-home orders; welfare effects; choice experiment |
| JEL: | D62 I18 |
| Date: | 2020–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2020_009&r=all |
| By: | Hiroki Tanaka (Doshisha University); Masaya Yasuoka (Kwansei Gakuin University) |
| Abstract: | This paper presents consideration of a case in which household education investment, which determines the human capital of children, is made using education of two types: public and private. Furthermore, these analyses based on prefectural panel data obtained for Japan are done using a theoretical model by which income inequality affects household education choice and illustrates empirically whether or not the choice of public and private education in junior and senior high school in Japan is affected by household income inequality and by the subsidy provided by central and local governments for high school tuition fees. The analyses yield the following three results. First, in prefectures with high household income inequality, the preference for public education is slight. Second, a policy of no tuition fees for public high schools and a decrease in tuition fees for private high schools that started from 2010 do not affect public and private education choice for high school. Nevertheless, this policy strongly affects enrollment in private junior high schools. Third, an increase in subsidies for tuition fees of private high school started in 2014 raises preferences for private junior high schools and high schools. In addition, in the prefecture in which subsidies for tuition fees that are higher than the level decided by cental government and the subsidies own benefit for enrollment fees, enrollment in private high school is observed to be stimulated. |
| Keywords: | ; Education choice, Income inequality, Public and private education |
| JEL: | I24 H52 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:216&r=all |
| By: | Abhinash Borah (Ashoka University); Raghvi Garg (Ashoka University) |
| Abstract: | We model the behavior of a decision maker (DM) who faces an intrapersonal conflict between what she wants to do (her “want-self†) and what she thinks she should do (her “should-self†). In our model, in any choice problem, the DM first eliminates the worst alternative(s) according to the preferences of her should-self, presumably, as a way of managing the guilt that results from making choices she should not. Then, from the remaining alternatives, she chooses the best one according to the preferences of her want-self. Drawing on Freud, we interpret this choice procedure as reflective of the balancing act that preserving one’s ego requires. Indeed, this balance is key to a DM’s ability to exercise self regulation which our model analyzes in the context of behavioral choices. We characterize the model behaviorally and identify the extent to which the key behavioral parameters can be uniquely identified from choice data. |
| Keywords: | intrapersonal conflict, want and should selves, ego preserving heuristic, self regulation and ego depletion, behavioral choices |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ash:wpaper:29&r=all |