Model selection for the mixed logit with Bayesian estimation
Ali Chalak and
Iain Fraser ()
Journal of Environmental Economics and Management, 2009, vol. 57, issue 2, 226-237
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)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:57:y:2009:i:2:p:226-237
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