Welfare Measurement Bias in Household and On-Site Surveying of Water-Based Recreation: An Application to Lake Sevan, Armenia

23 Pages Posted: 20 Apr 2016

See all articles by Benoit Laplante

Benoit Laplante

Independent Consultant

Craig M. Meisner

The World Bank; The World Bank

Hua Wang

World Bank - Infrastructure and Environment Team

Date Written: June 1, 2006

Abstract

Studies comparing household surveys with on-site interceptor surveys have typically accounted for over-sampling avid users in the on-site interceptor surveys (that is, endogenous stratification). However, these studies have typically not accounted for the possibility that the household sample may contain a large presence of zero observations. If a large proportion of the population does not recreate at the site for any value of the price vector, this inflation of zero observations leads to biased welfare estimates and an inadequate comparison with the on-site survey. In this paper, the authors estimate and compare three models which correct for these measurement issues in both the household and on-site surveys. Results from an application to recreation at Lake Sevan (Armenia) indicate that household consumers' surplus is not statistically different from that of the on-site survey once the authors account for zero-inflation in the household sample and endogenous stratification in the on-site sample.

Suggested Citation

Laplante, Benoit and Meisner, Craig M. and Wang, Hua, Welfare Measurement Bias in Household and On-Site Surveying of Water-Based Recreation: An Application to Lake Sevan, Armenia (June 1, 2006). World Bank Policy Research Working Paper No. 3932. Available at SSRN: https://ssrn.com/abstract=917503

Benoit Laplante

Independent Consultant

Craig M. Meisner (Contact Author)

The World Bank ( email )

1818 H Street
Washington, DC 20433
United States

The World Bank ( email )

1818 H Street N.W
Washington, DC 20433
United States

Hua Wang

World Bank - Infrastructure and Environment Team ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
56
Abstract Views
520
rank
367,054
PlumX Metrics