|
on Discrete Choice Models |
| By: | Thanh Viet Nguyen (University of Akureyri); Michel Simioni (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Hung Trung Vo (Thu Dau Mot University - Partenaires INRAE) |
| Abstract: | The study aims at valuing mangrove ecosystem services in Xuan Thuy National Park, Red River Delta, Vietnam. A discrete choice experiment was employed to elicit household willingness to pay (WTP) for a community project to protect mangroves against climate change. A conditional logit model and a random parameter logit model were estimated to identify the relationships between WTP and the different attributes of the mangrove conservation project. The results suggested that local households exhibited strong preferences for mangrove coverage area and storm prevention capacity whereas biodiversity benefits were not greatly perceived by most respondents. High level of heterogeneity in household preferences was found for the high mangrove coverage, and high management level of biodiversity. Furthermore, marginal household WTPs were computed given a change in each attribute level. Hence, the findings will aid in the development of a comprehensive payment for mangrove preservation policy in Vietnam. |
| Keywords: | Mangrove preservation,Environmental services valuation,Discrete choice experiment,Xuan Thuy National Park,Vietnam |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03708264&r= |
| By: | Chakravarty, Shourish; Wade, Tara |
| Keywords: | Agribusiness, Agricultural and Food Policy, Production Economics |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322606&r= |
| By: | Galanis, Giorgos (School of Business and Management, Queen Mary, University of London; Centre for Research in Economic Theory and its Applications, University of Warwick); Kollias, Iraklis (Department of Economics, University of Athens); Leventidis, Ioanis (Department of Economics, University of Athens); Lustenhouwer, Joep (Department of Economics, Heidelberg University) |
| Abstract: | The growing literature in behavioral finance and macroeconomics that uses dynamic discrete choice models has overwhelmingly assumed that individual choices are made on the basis of a logit framework. While this assumption allows for analytical tractability, it comes with a number of restrictions with regards to the economic environments it can represent. These restrictions are lifted if a probit framework is used instead. In this paper we compare the two approaches and show that, due to its ability to allow for correlations between the random part of dierent choice alternatives as well as random taste variation, the probit-based model can better fit actual choice data from an existing laboratory experiment, especially if there are more choice alternatives. On the other hand, for the case of two choice alternatives without random taste variation, the probit-based and logit-based models result in very similar dynamics. But even in that case, we find that important qualitative dierences arise – in terms of an additional region of chaos – in the cobweb model of the seminal work of Brock and Hommes (1997). Our work highlights the usefulness of using the probit framework for extensions of existing theoretical models and as a way to better fit dynamic experimental or real world choice data |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:wcreta:73&r= |
| By: | Gabrielyan, Gnel; Just, David R. |
| Keywords: | Marketing, Research Methods/Statistical Methods, Agribusiness |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322354&r= |
| By: | Victor Champonnois (Aix-Marseille Univ, CNRS, AMSE, Marseille, France.); Olivier Chanel (Aix-Marseille Univ, CNRS, AMSE, Marseille, France.); Costin Protopopescu (Aix-Marseille Univ, CNRS, AMSE, Marseille, France.) |
| Abstract: | Recurring statistical issues such as censoring, selection and heteroskedasticity often impact the analysis of observational data. We investigate the potential advantages of models based on quantile regression (QR) for addressing these issues, with a particular focus on willingness to pay-type data. We gather analytical arguments showing how QR can tackle these issues. We show by means of a Monte Carlo experiment how censored QR (CQR)-based methods perform compared to standard models. We empirically contrast four models on flood risk data. Our findings confirm that selection-censored models based on QR are useful for simultaneously tackling issues often present in observational data. |
| Keywords: | Censored Quantile Regression; Contingent Valuation; Flood; Monte Carlo Experiment; Quantile Regression; Selection Model; Willingness to Pay |
| JEL: | C15 C9 C21 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:2214&r= |
| By: | Gayle, Philip; Wang, Jin; Fang, Shengnan |
| Abstract: | This paper investigates the extent to which media coverage on organic dairy issues influences consumers’ willingness to pay (WTP) for the organic attribute of milk. We find that news with contents most often viewed as negative toward organic dairy are more powerful in decreasing consumers’ WTP for the organic attribute of milk compared to the positive WTP impact of news articles with contents most often viewed as positive toward organic dairy. Interestingly, consumers' increasing exposure to organic dairy news that even take a neutral stance on the organic attribute also increases their WTP for the organic attribute. |
| Keywords: | Organic Food; Organic Price Premium; Newspaper Coverage; Milk Industry |
| JEL: | D10 L13 L15 L82 M30 Q00 |
| Date: | 2022–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113924&r= |
| By: | Bo E. Honor\'e; Luojia Hu; Ekaterini Kyriazidou; Martin Weidner |
| Abstract: | Two of Peter Schmidt's many contributions to econometrics have been to introduce a simultaneous logit model for bivariate binary outcomes and to study estimation of dynamic linear fixed effects panel data models using short panels. In this paper, we study a dynamic panel data version of the bivariate model introduced in Schmidt and Strauss (1975) that allows for lagged dependent variables and fixed effects as in Ahn and Schmidt (1995). We combine a conditional likelihood approach with a method of moments approach to obtain an estimation strategy for the resulting model. We apply this estimation strategy to a simple model for the intra-household relationship in employment. Our main conclusion is that the within-household "correlation" in employment differs significantly by the ethnicity composition of the couple even after one allows for unobserved household specific heterogeneity. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2207.07343&r= |
| By: | Andor, Mark Andreas; Lange, Andreas; Sommer, Stephan |
| Abstract: | Exemptions from costly policy measures are frequently applied to alleviate financial burdens to specific market participants. Using a stated-choice experiment with around 6,000 German household heads, we test how exemptions for low-income households and energy-intensive companies influence the political acceptability of additional cost for the promotion of renewable energies. We find that the support for the policy is substantially higher when low-income households are exempt rather than the industry. Introducing exemptions for low-income households on top of existing exemptions for the industry increases the acceptability of the policy. We show that the support for exemptions as one example of distributional policy design is associated with individual behavioral measures like inequality aversion and fairness perceptions. |
| Keywords: | Fairness,distributional effects,environmental policy,exemptions renewable energy,political acceptance,behavioral economics,discrete choice experiment |
| JEL: | D03 D12 H41 Q20 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:944&r= |
| By: | Chishimba, Elizabeth; Larochelle, Catherine |
| Keywords: | Environmental Economics and Policy, Resource/Energy Economics and Policy, Marketing |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322492&r= |
| By: | Raghav Malhotra |
| Abstract: | Historically, testing whether decision-makers (DM) obey certain axioms from choice data has taken two rather distinct approaches. The functional approach involves observing the entire demand function and putting restrictions on it; the revealed preference approach involves constructing algebraic inequalities which are used to test finite data. Using restrictions derived in \cite{kubler2020identification}, we demonstrate a link between revealed preference tests and function-based restrictions. By this, we mean that any functional restriction that \textit{characterizes} the above axioms can be used to construct a well-behaved finite data test. We then develop an algorithm that does this efficiently. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2208.03737&r= |
| By: | Philip Marx; Elie Tamer; Xun Tang |
| Abstract: | Difference-in-differences (or DiD) is a commonly used method for estimating treatment effects, and parallel trends is its main identifying assumption: the trend in mean untreated outcomes must be independent of the observed treatment status. In observational settings, treatment is often a dynamic choice made or influenced by rational actors, such as policy-makers, firms, or individual agents. This paper relates the parallel trends assumption to economic models of dynamic choice, which allow for dynamic selection motives such as learning or optimal stopping. In these cases, we clarify the implications of parallel trends on agent behavior, and we show how such features can lead to violations of parallel trends even in simple settings where anticipation concerns are ruled out or mean untreated outcomes are stationary. Finally, we consider some identification results under alternative assumptions that accommodate these features of dynamic choice. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2207.06564&r= |
| By: | Fatemeh Nosrat |
| Abstract: | Crowdfunding, which is the act of raising funds from a large number of people's contributions, is among the most popular research topics in economic theory. Due to the fact that crowdfunding platforms (CFPs) have facilitated the process of raising funds by offering several features, we should take their existence and survival in the marketplace into account. In this study, we investigated the significant role of platform features in a customer behavioral choice model. In particular, we proposed a multinomial logit model to describe the customers' (backers') behavior in a crowdfunding setting. We proceed by discussing the revenue-sharing model in these platforms. For this purpose, we conclude that an assortment optimization problem could be of major importance in order to maximize the platforms' revenue. We were able to derive a reasonable amount of data in some cases and implement two well-known machine learning methods such as multivariate regression and classification problems to predict the best assortments the platform could offer to every arriving customer. We compared the results of these two methods and investigated how well they perform in all cases. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2207.07222&r= |