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1. A More Flexible Model or Simply More Effort? On the Use of Correlated Random Parameters in Applied Choice Studies

Author:
Petr Mariel; Jürgen Meyerhoff
Source:
Ecological economics 2018 v.154 pp. 419-429
ISSN:
0921-8009
Subject:
agri-environmental policy; case studies; decision making; ecological value; farmers; logit analysis; models; willingness to pay; Germany
Abstract:
... The random parameter logit model has become the dominating model for analyzing stated choice data in environmental valuation. The unrestricted version of the model with correlated random parameters, however, is rarely applied. An important advantage of this specification is that the correlations between the parameters are not restricted to zero. These correlations can arise due to a behavioural ph ...
DOI:
10.1016/j.ecolecon.2018.08.020