Estimating Four Hicksian Welfare Measures for a Public Good: A Contingent Valuation Investigation

2000 ◽  
Vol 76 (3) ◽  
pp. 355 ◽  
Author(s):  
Ian J. Bateman ◽  
Ian H. Langford ◽  
Alistair Munro ◽  
Chris Starmer ◽  
Robert Sugden
Keyword(s):  
Contingent Valuation ◽  
Public Good ◽  
Welfare Measures ◽  
Hicksian Welfare

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 A Consequential Contingent Valuation Referendum: Still Not Enough to Elicit True Preferences for Public Goods!

2018 ◽  
Vol 2 (49) ◽  
pp. 73-90 ◽  
Author(s):  
Ewa Zawojska
Keyword(s):  
Public Policy ◽  
Public Goods ◽  
Contingent Valuation ◽  
Public Good ◽  
Stated Preference ◽  
Survey Result ◽  
Practical Application ◽  
The Public ◽  
Value Elicitation ◽  
True Preferences

Abstract Whether respondents disclose their preferences truthfully in surveys that are used to assess the values of public goods remains a crucial question for the practical application of stated preference methods. The literature suggests that in order to elicit true preferences, respondents should see a valuation survey as consequential: they must believe in the actual consequences that may follow from the survey result. Drawing on recent empirical findings, we develop a model depicting the importance of the consequentiality requirement for truthful preference disclosure in a survey that evaluates a public policy project based on a referendum-format value elicitation question. First, we show that a respondent’s belief that his vote may influence the outcome of the referendum plays a central role for revealing his preferences truthfully. Second, we find that the subjectively perceived probabilities of the successful provision of the public good and of the collection of the payment related to the project implementation not only need to be positive but also to be in a particular relationship with each other. This relationship varies in respondents’ preferences towards risk.

scholarly journals Hicksian Welfare Measures within a Regret Theory Framework

1988 ◽  
Vol 70 (5) ◽  
pp. 1100-1106 ◽  
Author(s):  
James J. Opaluch ◽  
Kathleen Segerson
Keyword(s):  
Regret Theory ◽  
Welfare Measures ◽  
Theory Framework ◽  
Hicksian Welfare

The economic value of moose hunting in Newfoundland

1995 ◽  
Vol 25 (2) ◽  
pp. 319-328 ◽  
Author(s):  
Barbara Condon ◽  
Wiktor Adamowicz
Keyword(s):  
Forest Management ◽  
Contingent Valuation ◽  
Statistical Models ◽  
Contingent Valuation Method ◽  
Economic Value ◽  
Valuation Method ◽  
Welfare Measures ◽  
Moose Hunting ◽  
Game Hunting ◽  
Big Game Hunting

The dichotomous choice contingent valuation method was used to determine the net economic value of moose hunting in Newfoundland. Specific questions addressed the value of changes in moose hunting that could result from forest management. Three statistical models were used to determine mean and median welfare measures for four different contingent valuation models. The values obtained are similar to other studies that have obtained economic values for big-game hunting. The results show that although differences in welfare measures exist between statistical models, the mean and median values within a specification appear to be relatively robust. The results also suggest that factors affected by forest management (e.g., moose populations) provide more substantial benefits than factors under the control of the administrative agency (e.g., season length).

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