Nonparametric Discrete Choice Methods for Measuring Economic Values
University of New Hampshire - Department of Economics
Douglas W. Nychka
National Center for Atmospheric Research (NCAR)
V. Kerry Smith
Arizona State University (ASU) - Economics Department; National Bureau of Economic Research (NBER)
December 21, 1995
The purpose of this research is to use measures of willingness to pay derived from random utility models as the basis for evaluating the properties of parametric and nonparametric estimators with binary choice data. Monte Carlo simulations are conducted to evaluate two parametric methods and a nonparametric method. The simulation results indicate that simple parametric methods outperform the nonparametric method for a range of underlying preference structures.
Number of Pages in PDF File: 26
JEL Classification: C25, Q20working papers series
Date posted: November 26, 1997
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