European Review of Agricultural Economics Advance Access published online on July 7, 2009
European Review of Agricultural Economics, doi:10.1093/erae/jbp012
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Modelling attribute non-attendance in choice experiments for rural landscape valuation
University of Waikato, Hamilton, New Zealand
University of Notre Dame, Indiana, USA
Queen's University Belfast, Northern Ireland
University of Sydney, Australia
Corresponding author: Riccardo Scarpa, Department of Economics, Waikato Management School, University of Waikato, Hamilton, New Zealand. E-mail: rscarpa{at}waikato.ac.nz, Web: http://www.mngt.waikato.ac.nz/ric/
Received November 2008; Revision received February 2009. Non-market effects of agriculture are often estimated using discrete choice models from stated preference surveys. In this context we propose two ways of modelling attribute non-attendance. The first involves constraining coefficients to zero in a latent class framework, whereas the second is based on stochastic attribute selection and grounded in Bayesian estimation. Their implications are explored in the context of a stated preference survey designed to value landscapes in Ireland. Taking account of attribute non-attendance with these data improves fit and tends to involve two attributes one of which is likely to be cost, thereby leading to substantive changes in derived welfare estimates.
Keywords: attribute non-attendance, discrete choice modelling, stated preference, latent class models, stochastic attribute selection models
JEL classification: C25, Q26, Q51