THE IMPLICATIONS OF MODEL-SPECIFICATION FOR WELFARE ESTIMATION IN NESTED LOGIT-MODELS

Authors
KLING CL THOMSON CJ
Citation
Cl. Kling et Cj. Thomson, THE IMPLICATIONS OF MODEL-SPECIFICATION FOR WELFARE ESTIMATION IN NESTED LOGIT-MODELS, American journal of agricultural economics, 78(1), 1996, pp. 103-114
Citations number
32
Categorie Soggetti
Economics,"AgricultureEconomics & Policy
Journal title
American journal of agricultural economics → ACNP
ISSN journal
00029092
Volume
78
Issue
1
Year of publication
1996
Pages
103 - 114
Database
ISI
SICI code
0002-9092(1996)78:1<103:TIOMFW>2.0.ZU;2-0
Abstract
Nested legit models are increasingly being used to value environmental amenities. The implications of nesting structure, choice of estimator (FIML or sequential), and restrictions on parameters across nested gr oups on welfare estimates are examined. These issues have received lit tle previous attention. Model selection criteria that can be used to d istinguish among the models are extended and applied. Additionally, a simulation procedure is implemented to construct standard errors for t he welfare measures.