Incorrectly accounting for preference heterogeneity in choice experiments: Implications for welfare measurement

Catalina M. Torres Figuerola, Sergio Colombo and Nick Hanley

Economia Agraria y Recursos Naturales, 2014, vol. 14, issue 02, 25

Abstract: The impact of the approach used to describe preference heterogeneity on welfare measures has been widely studied by the academic community. However, the question as to the degree of error in welfare estimation from an inappropriate choice of empirical approach has not been addressed yet. In this paper, we use Monte Carlo analysis to investigate this issue. Our overall conclusion is that, when analysts have difficulties in choosing the best approach relying on available statistical tests, smaller errors in welfare measures are likely to come from use of a latent class model.

Keywords: Research; Methods/; Statistical; Methods (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/195724/files/Cap5.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:earnsa:195724

DOI: 10.22004/ag.econ.195724

Access Statistics for this article

More articles in Economia Agraria y Recursos Naturales from Spanish Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().