Abstract

Assume that a valuation survey is conducted for estimating the benefits of a policy change. In order to estimate the willingness to pay (WTP) for the policy change, a classic and interval open-ended question is used. This question permits respondents to choose between two types of answer, either an exact WTP amount or a self-selected interval. Accidently, a rather large proportion of the respondents give exact WTP values as well as intervals. In this set up, we derive a nonparametric maximum likelihood estimator of the distribution of WTP. Monte Carlo simulations are performed to study the behavior of the proposed estimator

Keywords

Classic and interval open-ended question; contingent valuation; interval-censored data; middle-censored data; nonparametric maximum likelihood estimation; self-censored data; willingness to pay

Published in

Research report (Centre of Biostochastics)
2010,
Publisher: Centre of Biostochastics, Swedish University of Agricultural Sciences

SLU Authors

• Ekström, Magnus

  • Department of Forest Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Economics and Business
Social Sciences


Permanent link to this page (URI)

https://res.slu.se/id/publ/31346