Dealing with zero response data from contingent valuation surveys: application of least absolute deviations estimator

Seung-Hoon Yoo (), Seung-Jun Kwak and Tai-Yoo Kim

Applied Economics Letters, 2000, vol. 7, issue 3, 181-184

Abstract: Data on willingness-to-pay (WTP) collected from contingent valuation surveys are usuallycensoredat zero. Insuch cases, ordinary least squares estimationof the WTP equation produces inconsistent parameter estimates. The maximum likelihood estimation of the Tobit model, which is widely used in this case, is not robust to heteroscedasticity and non-normal error structure. A least absolute deviations estimator allows for the censored data structure and is robust to these problems. In addition, the technique is useful in the case of small amounts of data. It is applied to household survey data in which the contingent valuation question involved the benefit of greenhouse gases reduction policy in Korea.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
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:taf:apeclt:v:7:y:2000:i:3:p:181-184

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/135048500351753

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().