Indirect Utility Estimation

2017 ◽  
Author(s):  
Patrick DeJarnette
Keyword(s):  
Indirect Utility ◽  
Utility Estimation

Eliciting Risk Preferences and Elasticity of Substitution

2020 ◽  
Vol 17 (4) ◽  
pp. 314-329
Author(s):  
Johan Burgaard ◽  
Mogens Steffensen
Keyword(s):  
Risk Aversion ◽  
Discount Rate ◽  
Predictive Power ◽  
Recursive Utility ◽  
Risk Averse ◽  
Indirect Utility ◽  
Consistent Estimation ◽  
On Certainty ◽  
Certainty Equivalents ◽  
Elasticity Of Intertemporal Substitution

Risk aversion and elasticity of intertemporal substitution (EIS) are separated via the celebrated recursive utility building on certainty equivalents of indirect utility. Based on an alternative separation method, we formulate a questionnaire for simultaneous and consistent estimation of risk aversion, subjective discount rate, and EIS. From a representative group of 1,153 respondents, we estimate parameters for these preferences and their variability within the population. Risk aversion and the subjective discount rate are found to be in the orders of 2 and 0, respectively, not diverging far away from results from other studies. Our estimate of EIS in the order of 10 is larger than often reported. Background variables like age and income have little predictive power for the three estimates. Only gender has a significant influence on risk aversion in the usually perceived direction that females are more risk-averse than males. Using individual estimates of preference parameters, we find covariance between preferences toward risk and EIS. We present the background reasoning on objectives, the questionnaire, a statistical analysis of the results, and economic interpretations of these, including relations to the literature.

scholarly journals Hicksian Welfare Measures and the Normative Endowment Effect

2010 ◽  
Vol 2 (4) ◽  
pp. 171-194 ◽  
Author(s):  
Thomas A Weber
Keyword(s):  
Utility Function ◽  
Sufficient Conditions ◽  
Endowment Effect ◽  
Indirect Utility ◽  
Compensating Variation ◽  
Equivalent Variation ◽  
Indirect Utility Function ◽  
Welfare Measures ◽  
Empirical Implications ◽  
Hicksian Welfare

We show that the Hicksian welfare measures of compensating variation and equivalent variation coincide if one of them is evaluated at a compensated income. The measures are nondecreasing in income if the varied attribute and income are complementary, and indirect utility is concave in income. Income monotonicity implies the normative endowment effect, where the equivalent variation exceeds the compensating variation. We provide sufficient conditions for the normative endowment effect and discuss empirical implications. In the global absence of a strict (anti-) endowment effect, both Hicksian welfare measures must be independent of income and the indirect utility function additively separable in income. (JEL D11, D63)

scholarly journals Coupling and Deviating of Altruism-Voluntariness Relationship in Organ Transplantation

2021 ◽  
Author(s):  
Mesut Güvenbaş ◽  
Omur Sayligil
Keyword(s):  
Organ Transplantation ◽  
Living Donor ◽  
Living Donors ◽  
Indirect Utility ◽  
Universal Principle ◽  
Right To Life ◽  
Human Right ◽  
Real Situation ◽  
New Approach ◽  
The Right

Organ transplantation is an issue that concerns two people (donor and recipient) at the same time in terms of the right to life, which is the most basic human right. The direct utility arising from organ transplantation involves the patient to whom the organ is transplanted, and the indirect utility relates to the donor. Today, the decision to obtain an organ from a living donor is based on the idea of doing something good by those who sacrifice themselves for their relatives. The person who donates an organ treats their body as an instrument and uses their willpower on it. If the statement “I will care about the health of others” is accepted as a universal principle, it will be very important to establish a balance between the duty of caring for the health of others and protecting one’s own health. If we want to introduce a new approach to be adopted in the assessment of living donors in society, we must look at the real situation in terms of utility, altruism, and volunteering. This Chapter thus evaluates organ transplantation from living donors in terms of utility, altruism, and volunteering.

scholarly journals Conjoint Analysis for Selecting the Ingredients Levels of Fortified Beverage

2021 ◽  
Vol 10 (9) ◽  
pp. 146-151
Author(s):  
R. Navarasam Ayyavoo Preamnath Manoharan ◽  
V. Appa Rao T. R. Pugazhenthi ◽  
A. Serma Saravana Pandian
Keyword(s):  
Conjoint Analysis ◽  
Research Paper ◽  
Relative Importance ◽  
Trade Off ◽  
Multivariate Technique ◽  
Fortified Beverage ◽  
Utility Estimation ◽  
Product Concepts

This research paper concentrated on the “Conjoint Analysis for Selecting the Ingredients Levels of Fortified Beverage”. Conjoint analysis is a multivariate technique used specifically to understand how consumers develop preferences for products or services and to formulate predictions about ingredients levels towards product concepts and it is also called as trade-off analysis. The fortified beverage was prepared with various levels of ingredients such as Carrot (5%, 10% and 15%), Moringa (5%,10% and 15%), Mushroom (3%,6% and 9%), Dates (1%,2% and 3%) and Seaweed (1%,2% and 3%). Since, this large number of combinations led to non-responsible of consumers and improper results may be obtained. Hence, the conjoint analysis for selecting the best ingredient levels of ideal fortified beverage is based on the utility estimation and relative importance of attributes and was found that it should have the following attributes combination: Carrot – 15 per cent, Mushroom – 6 Per cent, Moringa – 5 per cent, Dates – 2 per cent and Sea Weed – 1 per cent.

A systematic review of health economic models and utility estimation methods in schizophrenia

2018 ◽  
Vol 18 (3) ◽  
pp. 267-275 ◽  
Author(s):  
Bertalan Németh ◽  
Ahmad Fasseeh ◽  
Anett Molnár ◽  
István Bitter ◽  
Margit Horváth ◽  
...  
Keyword(s):  
Systematic Review ◽  
Health Economic ◽  
Economic Models ◽  
Estimation Methods ◽  
Utility Estimation
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