The Effect of Nesting Structure Specification on Welfare Estimation in a Random Utility Model of Recreation Demand: An Application to the Demand for Recreational Fishing

A. Brett Hauber and George Parsons

American Journal of Agricultural Economics, 2000, vol. 82, issue 3, 501-514

Abstract: Nested logit has become common in estimating random utility models of recreation demand. Because welfare analysis is often the objective of estimating these models, it seems natural to ask, what effect does the choice of nesting structure have on the welfare estimates generated by these models? Therefore, we compare the results of nine nesting structures andfindthat the variation in welfare estimates across the models is not large. Our results are contrary to those of Kling and Thomson and Shaw and Ozog. The difference appears to originate with differences in the estimated dissimilarity coefficients in the nested models. Copyright 2000, Oxford University Press.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://hdl.handle.net/10.1111/0002-9092.00042 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:ajagec:v:82:y:2000:i:3:p:501-514

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().