Testing and Correcting for Sample Selection Bias in Discrete Choice Contingent Valuation Studies
Jan Eklöf () and
Sune Karlsson ()
Additional contact information
Jan Eklöf: Department of Economic Statistics, Postal: Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
No 171, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics
The discrete choice or ”referendum” contingent valuation technique has become a popular tool for assessing the value of non-market goods. Surveys used in these studies frequently suffer from large non-response which can lead to significant bias in parameter estimates and in the estimate of mean Willingness to Pay. We investigate the properties of tests for sample selection bias and the losses made by applying estimators assuming no sample selection. The effects of sample selection bias can be sizable but bivariate probit estimation give unbiased estimates. A computationally straightforward test for sample selection bias is found to perform well.
Keywords: Bivariate probit; non-response; willingness to pay; omitted variables test (search for similar items in EconPapers)
JEL-codes: C25 C34 C35 Q20 (search for similar items in EconPapers)
Date: 1997-05, Revised 1999-06-23
References: Add references at CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
http://swopec.hhs.se/hastef/papers/hastef0171.code.zip Gauss code for paper (application/zip)
http://swopec.hhs.se/hastef/papers/hastef0171.readme.txt Read me file (text/plain)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:hhs:hastef:0171
Access Statistics for this paper
More papers in SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. Contact information at EDIRC.
Series data maintained by Helena Lundin ().