Willingness to Pay for Rural Landscape Improvements: Combining Mixed Logit and Random‐Effects Models

Journal of Agricultural Economics - Tập 58 Số 3 - Trang 467-483 - 2007
Danny Campbell1
1School of Biological Sciences

Tóm tắt

AbstractThis paper reports the findings from a discrete‐choice experiment designed to estimate the economic benefits associated with rural landscape improvements in Ireland. Using a mixed logit model, the panel nature of the dataset is exploited to retrieve willingness‐to‐pay values for every individual in the sample. This departs from customary approaches in which the willingness‐to‐pay estimates are normally expressed as measures of central tendency of an a priori distribution. Random‐effects models for panel data are subsequently used to identify the determinants of the individual‐specific willingness‐to‐pay estimates. In comparison with the standard methods used to incorporate individual‐specific variables into the analysis of discrete‐choice experiments, the analytical approach outlined in this paper is shown to add considerable explanatory power to the welfare estimates.

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