Abstract

Welfare change estimates obtained from discrete-response contingent valuation experiments normally assume a particular distribution of,willingness-to-pay (WTP). Using 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 results from contingent valuation studies using discrete-response data. (JEL Q26).

Published in

Land Economics
1999, Volume: 75, number: 2, pages: 284-294
Publisher: UNIV WISCONSIN

SLU Authors

• Kriström, Bengt

  • Department of Forest Economics, Swedish University of Agricultural Sciences
    

• Boman, Mattias

  • Department of Forest Economics, Swedish University of Agricultural Sciences
    

• Bostedt, Göran

  • Department of Forest Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Economics


Publication identifier

DOI: https://doi.org/10.2307/3147011

Permanent link to this page (URI)

https://res.slu.se/id/publ/63126