Household versus Individual Valuation: What's the Difference?

Royal Holloway, University of London Discussion Paper No. 2006/02

35 Pages Posted: 14 Jan 2008 Last revised: 19 Nov 2013

See all articles by Ian J. Bateman

Ian J. Bateman

University of East Anglia (UEA) - School of Economic and Social Studies

Alistair Munro

National Graduate Institute for Policy Studies (GRIPS); University of London, Royal Holloway College - Department of Economics

Date Written: February 1, 2006

Abstract

Standard practice in stated preference typically blurs the distinction between household and individual responses. However, there is some theoretical debate regarding the appropriate approach. To date there have been no empirical tests of whether values for say a two adult household elicited by interviewing one randomly selected adult are the same as the values generated by interviewing both adults simultaneously. Using cohabiting couples, we conduct a choice experiment field study valuing reductions in dietary health risks. In one treatment a random individual is chosen from the couple and interviewed alone; in the other treatment, both partners are questioned jointly. We find significant differences in household values calculated from joint as opposed to individual responses, with further variation between the values elicited from men and women. Our results question the assumption, implicit in common practice, that differences between individually and jointly elicited estimates of household values can effectively be ignored.

Keywords: household values, choice experiment, contingent valuation, food and health risks

JEL Classification: C920, D130, D80

Suggested Citation

Bateman, Ian Julian and Munro, Alistair, Household versus Individual Valuation: What's the Difference? (February 1, 2006). Royal Holloway, University of London Discussion Paper No. 2006/02. Available at SSRN: https://ssrn.com/abstract=955260 or http://dx.doi.org/10.2139/ssrn.955260

Ian Julian Bateman

University of East Anglia (UEA) - School of Economic and Social Studies ( email )

Norwich, Norfolk NR4 7TJ
United Kingdom

Alistair Munro (Contact Author)

National Graduate Institute for Policy Studies (GRIPS) ( email )

Tokyo
Japan

HOME PAGE: http://www.grips.ac.jp/

University of London, Royal Holloway College - Department of Economics ( email )

Royal Holloway College
Egham
Surrey, Surrey TW20 0EX
United Kingdom

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