Combining averting behavior and contingent valuation data: an application to drinking water treatment

Marcia A. Rosado, Maria A. Cunha-e-Sa, Maria M. Ducla-Soares and Luis Nunes

Nova SBE Working Paper Series from Universidade Nova de Lisboa, Nova School of Business and Economics

Abstract: This paper is an empirical application that combines averting behavior with contingent valuation data. Consistency tests are performed incorporating alternative heteroscedastic structures in the bivariate probit models by taking advantage of the different information content that characterizes each data source. We look at three covariates not yet examined in the literature when combining stated and revealed preferred data to explain the variance in the models: income, the bid in the contingent valuation questionnaire, and the distance between the bid and the averting expenditures with drinking water. The models estimated include between and within data sources heteroscedasticity. The results obtained allow the combination of the two data sources under a common preference structure.

Keywords: Averting behavior; combination of data sets; consistency tests; contingent valuation; revealed preferred data (search for similar items in EconPapers)
JEL-codes: C35 Q26 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://run.unl.pt/bitstream/10362/83634/1/WP392.pdf

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:unl:unlfep:wp392

Access Statistics for this paper

More papers in Nova SBE Working Paper Series from Universidade Nova de Lisboa, Nova School of Business and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Susana Lopes ().