Interval estimates of non-market resource values from referendum contingent valuation surveys

Abstract

Most researchers working with referendum contingent valuation data have done without confidence intervals for their fitted willingness-to-pay (WTP) values derived using referendum contingent valuation data. This paper reviews the use of censored regression models. We then show how they make it straightforward to produce confidence intervals (either for individual observations, at the means of the data, or for an arbitrarily forecasted set of explanatory variables). The strategy is familiar and completely analogous to the construction of such confidence intervals in generalized least squares (GLS) estimation. Furthermore, simple extensions to the computer programs used by most researchers who have worked with referendum data would readily allow them to produce interval estimates.

Publication
Land Economics 67(4) 413-421

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