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A Note on the Equilibrium Properties of Locational Sorting Models AgEcon
Bayer, Patrick; Timmins, Christopher.
A central feature of many models of location choice – whether of firms or households, within or across cities – is the role of local interactions or spillovers, whereby the payoffs from choosing a location depend in part on the number or attributes of other individuals or firms that choose the same or nearby locations in equilibrium. The main goal of this paper is to develop the equilibrium properties of a broadly applicable and readily estimable class of sorting models that allow the location decision to depend on both fixed local attributes (including unobserved attributes) and such local interactions. In particular, we prove uniqueness in the case of congestion effects and use a series of simulations to demonstrate that a unique equilibrium is more...
Tipo: Working or Discussion Paper Palavras-chave: Local spillovers; Social interactions; Economic geography; Natural advantage; Endogenous sorting; Discrete choice models; Agglomeration; Congestion; Random utility; Industrial Organization; H0; R0; R2; R3.
Ano: 2003 URL: http://purl.umn.edu/28378
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A Unified Framework for Measuring Preferences for Schools and Neighborhoods AgEcon
Bayer, Patrick; Ferreira, Fernando; McMillan, Robert.
This paper sets out a framework for estimating household preferences over a broad range of housing and neighborhood characteristics, some of which are determined by the way that households sort in the housing market. This framework brings together the treatment of heterogeneity and selection that has been the focus of the traditional discrete choice literature with a clear strategy for dealing with the correlation of unobserved neighborhood quality with both school quality and neighborhood sociodemographics. We estimate the model using rich data on a large metropolitan area, drawn from a restricted version of the Census. The estimates indicate that, on average, households are willing to pay an additional one percent in house prices - substantially lower...
Tipo: Working or Discussion Paper Palavras-chave: Capitalization; Local public goods; School quality; Discrete choice models; Hedonic price regression; Education demand; Labor and Human Capital; D58; H0; H4; H7; I2; R21; R31.
Ano: 2003 URL: http://purl.umn.edu/28513
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ANALIZING WATER FRAMEWORK DIRECTIVE IMPACTS USING A MULTINOMIAL LOGIT LAND USE MODEL AgEcon
Fezzi, Carlo; Bateman, Ian J.; Day, Brett H.; Posen, Paulette; Rigby, Dan.
We develop a two-stage, multinomial logit model of UK land use to investigate the impact of policy changes upon agriculture. The model utilizes a large panel database covering the entirety of England and Wales for 14 years between 1969 and 2004 integrated with the economic and physical environment determinants of all major agricultural land use types. Our model performs well in out-of-sample prediction of current land use and we use it to assess a proposed implementation of the Water Framework Directive via a tax on fertilizer. Results indicate that such policy change would generate substantial switching from arable to grassland systems, reducing significantly the amount of nitrate leaching into UK water-bodies.
Tipo: Conference Paper or Presentation Palavras-chave: Water Framework Directive; Land use models; Discrete choice models; Multinomial logit; Agricultural and Food Policy; Land Economics/Use; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/6666
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Biased estimates in discrete choice models: the appropriate inclusion of psychometric data into the valuation of recycled wastewater AgEcon
Gibson, Fiona L.; Burton, Michael P..
The introduction of measurement bias in parameter estimates into non-linear discrete choice models, as a result of using factor analysis, was identified by Train et al. (1987). They found that the inclusion of factor scores, used to represent relationships amongst like variables, into a subsequent discrete choice models introduced measurement bias as the measurement error associated with each factor score is excluded. This is an issue for non-market valuation given the increase in popularity of including psychometric data, such as primitive beliefs, attitudes and motivations, in willingness to pay estimates. This study explores the relationship between willingness to pay and primitive beliefs through a case study eliciting Perth community values for...
Tipo: Conference Paper or Presentation Palavras-chave: Discrete choice models; Attitudes; Factor analysis; Measurement models; Recycled wastewater.
Ano: 2009 URL: http://purl.umn.edu/47943
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Confidence intervals for predicted outcomes in regression models for categorical outcomes AgEcon
Xu, Jun; Long, J. Scott.
We discuss methods for computing confidence intervals for predictions and discrete changes in predictions for regression models for categorical outcomes. The methods include endpoint transformation, the delta method, and bootstrapping. We also describe an update to prvalue and prgen from the SPost package, which adds the ability to compute confidence intervals. The article provides several examples that illustrate the application of these methods.
Tipo: Journal Article Palavras-chave: Prvalue; Prgen; Confidence interval; Predicted probability; Discrete choice models; Endpoint transformation; Delta method; Bootstrap; Research Methods/ Statistical Methods.
Ano: 2005 URL: http://purl.umn.edu/117544
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Direct Selling: a Marketing Strategy to Shorten Distances between Production and Consumption AgEcon
Aguglia, Laura; De Santis, Francesco; Salvioni, Cristina.
Direct sales became in recent years a diversification strategy increasingly used by farms to answer the CAP reform, as well as to react to the continuous price squeeze. Direct sales is in fact a form of marketing that allow farmers to retain a higher share of the final value of products. Far from being a way back to tradition, short chains and direct sales can be seen as strategies to capture new segments of demand interested in local and fresh food, and in more direct contact between consumers and suppliers. The aim of this work is to study the recent evolution of direct selling in Italy and the determinants of the adoption of this marketing strategy. The first part of the paper analyses the evolution of Italian short supply chains and the development of...
Tipo: Conference Paper or Presentation Palavras-chave: Farm diversification; Direct selling; Short supply chain; Periurban agriculture; Discrete choice models; Marketing.
Ano: 2009 URL: http://purl.umn.edu/57657
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Estimating Equilibrium Models of Sorting Across Locations AgEcon
Bayer, Patrick; Timmins, Christopher.
With the growing recognition of the role played by geography in all sorts of economic problems, there is strong interest in measuring the size and scope of local spillovers (i.e., simple anonymous agglomeration or congestion effects, or more complicated interactions between individuals or firms of specific types). It is well-understood, however, that such spillovers cannot be distinguished from unobservable local attributes using just the observed location decisions of individuals or firms. We propose an empirical strategy for recovering estimates of spillovers in the presence of unobserved local attributes for a broadly applicable class of equilibrium sorting models. This approach relies on an instrumental variables strategy derived from the internal...
Tipo: Working or Discussion Paper Palavras-chave: Local spillovers; Location choice; Economic geography; Natural advantage; Social interactions; Network effects; Endogenous sorting; Discrete choice models; Agglomeration; Congestion; Institutional and Behavioral Economics; H7; R0; R2; R3.
Ano: 2003 URL: http://purl.umn.edu/28448
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How to make money by feeding the tourists: the case of Fiji AgEcon
Salvioni, Cristina.
This paper reports a study of the horticultural chain in Fiji. The objectives of the research was to understand how the domestic horticultural supply could meet the demand currently generated by the tourism sector, i.e. how new income opportunities for the rural people could be generated by feeding the tourists. If policy interventions are to be directed at strengthening backward economic linkages between tourism and local food supplier, a better understanding of factors driving farmers marketing choice is required. This paper aims to contribute in this regard by analyzing the decisions of farmers to engage in direct selling to hotels. Hotels pay premium prices for quality fresh produce and direct marketing can allow farmers to retain the highest...
Tipo: Conference Paper or Presentation Palavras-chave: Horticultural markets; Direct marketing; Discrete choice models; Fiji.; Community/Rural/Urban Development; Marketing.
Ano: 2007 URL: http://purl.umn.edu/7864
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Measuring Market Power in the Ready-To-Eat Cereal Industry AgEcon
Nevo, Aviv.
The ready-to-eat cereal industry is characterized by high concentration, high price-cost margins, large advertising to sales ratios, and numerous introductions of new products. Previous researchers have concluded that the ready-to-eat cereal industry is a classic example of an industry with nearly collusive pricing behavior and intense non-price competition. This paper empirically examines this conclusion. In particular, I estimate price-cost margins, but more importantly I am able empirically to separate these margins into three parts: (1) that which is due to product differentiation; (2) that which is due to multi-product firm pricing; and (3) that due to potential price collusion. The results suggest that given the demand for different brands of cereal,...
Tipo: Working or Discussion Paper Palavras-chave: Discrete choice models; Random coefficients; Product differentiation; Ready-to-eat cereal industry; Market power; Price competition; Agribusiness; Demand and Price Analysis; Industrial Organization.
Ano: 1998 URL: http://purl.umn.edu/25164
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Modelling South African grain farmers’ preferences to adopt derivative contracts using discrete choice models AgEcon
Ueckermann, E.M.; Blignaut, J.N.; Gupta, Rangan; Raubenheimer, J..
This paper applies a discrete choice model to determine specific characteristics that influence South African grain farmers’ preferences to hedge against uncertainties. This is the first empirical study on South African grain producers’ preferences to adopt derivative contracting and is based on the survey data of Grain South Africa for 2006. With the application of separate binary logit models for each major grain commodity, this paper establishes that different grain farmers are significantly heterogeneous. The results also show that grain farmers’ preferences to adopt derivative contracting are mostly influenced by the farmers’ prediction of daily grain prices and trends, farm size and various geographic characteristics. From a policy perspective it has...
Tipo: Journal Article Palavras-chave: Discrete choice models; Micro-analysis of farmers; Agricultural markets and marketing.
Ano: 2008 URL: http://purl.umn.edu/37631
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Offsetting Behavior and the Benefits of Food Safety Policies AgEcon
Nganje, William E.; Miljkovic, Dragan; Voica, Daniel; Onyango, Benjamin M..
The net effect of food policies, viewed in terms of reduction of foodborne illness, death and food related diseases from obesity, may sometimes be much smaller than the predicted effect because of failure to account for offsetting behavior (OB). Theoretical and empirical models are developed and tested to determine the presence of dominant or partial OB in food safety policies. Results reveal that information that affects outrage and other determinants of risk perception will cause consumers to relax their vigilance in response to the food safety policy. This behavioral anomaly indicates a serious deviation from rational choice and may help explain the growing gap between the decrease in pathogen levels recorded after hazard analysis of critical control...
Tipo: Report Palavras-chave: Offsetting behavior; Food safety policies; Risk perception; Discrete choice models; Food Consumption/Nutrition/Food Safety.
Ano: 2007 URL: http://purl.umn.edu/7637
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Quality Adjustment for Spatially-Delineated Public Goods: Theory and Application to Cost-of-Living Indices in Los Angeles AgEcon
Banzhaf, H. Spencer.
This paper illustrates how public goods may be incorporated into a cost-of-living index. When public goods are weak complements to a market good, quality-adjusted prices for the market good capture all the welfare information required. They are also consistent with a Laspeyres index that maintains the bound on a true cost-of-living index. The paper recovers this information from a discrete-choice model, using a simulation routine to solve for the appropriate price adjustments. These concepts are applied to the case of housing, education, crime, and air quality in Los Angeles for 1989 to 1994. Over a period of time when they are improving, incorporating pubic goods into the index lowers the estimated change in the cost of living by 0.5 to 2.6 percentage...
Tipo: Working or Discussion Paper Palavras-chave: Air quality; Discrete choice models; Green accounting; Nonmarket valuation; Price index; Public Economics; C51; D12; D60; E31; H40; R10.
Ano: 2002 URL: http://purl.umn.edu/10833
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Socioeconomic Factors and the Consumption of Wine in Tenerife AgEcon
Perez, G. Guirao; Fernandez, V. Cano; Yurda, M.I. Lopez; Donate, M.C. Rodriguez.
In this paper we measure the impact of an individual's socioeconomic conditions on the decision to consume wine in a traditionally wine-producing area. Based on the data obtained in an exhaustive survey on wine consumption and through discrete choice models, we assess the changes which come about in the decisions to consume the different types of wine under consideration, and we obtain the most relevant distinctive and differentiated characteristics for each one of them.
Tipo: Conference Paper or Presentation Palavras-chave: Wine consumption; Socioeconomic characteristics; Discrete choice models; Food Consumption/Nutrition/Food Safety.
Ano: 2002 URL: http://purl.umn.edu/24798
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State-Branded Programs and Consumer Preference for Locally Grown Produce AgEcon
Nganje, William E.; Hughner, Renee Shaw; Lee, Nicholas E..
Revitalization of state brands is deemed important to several constituencies. Stated preference with choice experiment methods were used to elicit consumer preferences for two locally grown products: spinach, which has had a well-publicized food safety incidence, and carrots, which have had no such incidence in recent history. A full factorial design was used to implement the choice experiment, with each commodity having four identical attributes varying at different levels. Findings reveal that consumers are willing to pay a premium for locally grown spinach marked with the Arizona Grown label over locally grown spinach that was not labeled. This premium was higher than the premium that would be paid for state-branded carrots. This difference highlights...
Tipo: Journal Article Palavras-chave: State-branded produce; Certification; Food safety; Traceability; Discrete choice models; Agribusiness; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Marketing.
Ano: 2011 URL: http://purl.umn.edu/107472
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Voluntary Environmental Action and Export Destinations: The Case of Forest Certification AgEcon
Moeltner, Klaus; van Kooten, G. Cornelis.
There is an increasing tendency for forest product firms worldwide to adopt sound environmental management practices by voluntarily agreeing to have their forest practices certified by third parties. Using a simple model of profit maximization, we illustrate that the puzzling emergence of this non-state, self-imposed governance structure is compatible with firms' profit motives. An empirical model using firm data from three countries shows firm location and export destinations play a key role in firms' decisions to seek certification, while the nature of forestland ownership has no significant impact on certification decisions.
Tipo: Journal Article Palavras-chave: Export markets; Forest certification; Profit maximization; Discrete choice models; Environmental Economics and Policy.
Ano: 2003 URL: http://purl.umn.edu/31100
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