Model selection for the mixed logit with Bayesian estimation

Kelvin George Balcombe, Ali Chalak and Iain Fraser ()

Journal of Environmental Economics and Management, 2009, vol. 57, issue 2, pages 226-237

Abstract: In this paper, the mixed logit (ML) using Bayesian methods was employed to examine willingness-to-pay (WTP) to consume bread produced with reduced levels of pesticides so as to ameliorate environmental quality, from data generated by a choice experiment. Model comparison used the marginal likelihood, which is preferable for Bayesian model comparison and testing. Models containing constant and random parameters for a number of distributions were considered, along with models in [`]preference space' and [`]WTP space' as well as those allowing for misreporting. We found: strong support for the ML estimated in WTP space; little support for fixing the price coefficient a common practice advocated and adopted in the environmental economics literature; and, weak evidence for misreporting.

Keywords: Mixed; logit; Willingness-to-pay; Model; comparison (search for similar items in EconPapers)
Date: 2009
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Persistent link: http://EconPapers.repec.org/RePEc:eee:jeeman:v:57:y:2009:i:2:p:226-237

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