Obtaining Welfare Bounds in Discrete-Response Valuation Studies: A Non-Parametric Approach

Mattias Boman, Göran Bostedt and Bengt Kriström ()

Land Economics, 1999, vol. 75, issue 2, 284-294

Abstract: Welfare change estimates obtained from discrete-response contingent valuation experiments normally assume a particular distribution of willingness-to-pay (W TP).U sing conventional microeconomic theory, we derive upper and lower bounds on such estimates. These bounds are interpreted statistically in terms of non-parametric estimators of mean WTP and its variance. Two contingent valuation surveys illustrate the proposed bounds, and the performances of the variance estimators are scrutinized with a Monte Carlo simulation. All calculations can be made by hand, simplifying communication among those involved in interpreting result from contingent valuation studies using discrete-response data.

JEL-codes: Q26 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (31)

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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:75:y:1999:i:2:p:284-294

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