Contingent valuation method and the changeover to the euro: an empirical application

Pierre-Alexandre Mathieu and Pere Riera

Revue d'économie régionale et urbaine, 2010, vol. décembre, issue 5, 987-1000

Abstract: Several countries may adopt the euro in the near future. Whether the change of currency may lead to different responses in non-market valuation surveys remains an open question. A contingent valuation application was carried out shortly after the changeover to the euro in Spain, with half of the participants being assigned a payment card in euro and the other half in pesetas. Results show that higher amounts were stated in euro than in pesetas, which is consistent with the ?euro illusion? hypothesis, a phenomenon observed in experiments involving market goods, in which people have the tendency to bid higher amounts for the currency having a lower nominal value.

Keywords: évaluation monétaire d'actifs environnementaux; méthode d'évaluationcontingente; euro illusion; environmental valuation; contingent valuation method; euro illusion (search for similar items in EconPapers)
Date: 2010
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