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Estimating Willingness to Pay for Improved Water Quality in the Presence of Item Nonresponse Bias
Author(s) -
Brox James A.,
Kumar Ramesh C.,
Stollery Kenneth R.
Publication year - 2003
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/1467-8276.00130
Subject(s) - contingent valuation , respondent , willingness to pay , payment card , non response bias , sample (material) , payment , econometrics , missing data , selection bias , quality (philosophy) , estimation , identification (biology) , valuation (finance) , economics , statistics , actuarial science , microeconomics , mathematics , philosophy , chemistry , botany , management , finance , chromatography , epistemology , political science , law , biology
This article deals with the problem of item nonresponse in contingent valuation surveys using a payment‐card method, by applying a grouped‐data sample‐selection estimation technique that is capable of imputing the missing values conditional upon a respondent's decision to answer a willingness‐to‐pay question. The advantage of the technique lies in its ability to utilize all of the information in the sample, permitting a more efficient estimation in the presence of item nonresponse bias. The major determinants of willingness to pay appear to be household income, number of children, education, perception of existing water quality, and identification with environmental issues.