Monte Carlo evidence has shown that simple, misspecified referendum contingent valuation (CV) models sometimes lead to good estimates of mean willingness to pay (WTP). Empirical studies have found that estimates on mean WTP derived from simple parametric models often differ little from those derived from nonparametric methods. This indicates that simple models can potentially yield WTP estimators that are relatively unbiased. This note shows that very simple logit referendum CV models will estimate WTP consistently if the survey bids are drawn randomly from a uniform distribution.
|Journal||Journal of Environmental Economics and Management|
|Publication status||Published - 1 Jan 1998|