You are not currently logged in.
Access your personal account or get JSTOR access through your library or other institution:
Allowing for Zeros in Dichotomous-Choice Contingent-Valuation Models
Journal of Business & Economic Statistics
Vol. 17, No. 4 (Oct., 1999), pp. 479-486
Stable URL: http://www.jstor.org/stable/1392405
Page Count: 8
Preview not available
Dichotomous-choice contingent-valuation data are modeled using a mixture distribution. The standard parametric survival model is modified such that respondents in the lowest willingness-to-pay category may have either zero willingness to pay or a small positive willingness to pay. In comparison to the standard model, the mixture model leads to a dramatic reduction in estimates of mean willingness to pay. Covariates such as income are found to be more significant in determining the positive portion of the distribution of willingness to pay.
Journal of Business & Economic Statistics © 1999 American Statistical Association