On finite sample performance of confidence intervals methods for willingness to pay measures

Valerio Gatta, Edoardo Marcucci () and Luisa Scaccia

Transportation Research Part A: Policy and Practice, 2015, vol. 82, issue C, 169-192

Abstract: This paper systematically compares finite sample performances of methods to build confidence intervals for willingness to pay measures in a choice modeling context. It contributes to the field by also considering methods developed in other research fields. Various scenarios are evaluated under an extensive Monte Carlo study. Results show that the commonly used Delta method, producing symmetric intervals around the point estimate, often fails to account for skewness in the estimated willingness to pay distribution. Both the Fieller method and the likelihood ratio test inversion method produce more realistic confidence intervals for small samples. Some bootstrap methods also perform reasonably well, in terms of effective coverage. Finally, empirical data are used to illustrate an application of the methods considered.

Keywords: Confidence interval; Willingness to pay; Choice modeling; Elasticity; Standard error (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S096585641500230X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:82:y:2015:i:c:p:169-192

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.tra.2015.09.003

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Catherine Liu ().