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Carnarvon Gorge: a comment on the sensitivity of consumer surplus estimation
Author(s) -
Chotikapanich Duangkamon,
Griffiths William E.
Publication year - 1998
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.00049
Subject(s) - sensitivity (control systems) , recreation , economic surplus , estimation , value (mathematics) , interval (graph theory) , statistics , econometrics , confidence interval , mathematics , economics , ecology , biology , combinatorics , engineering , management , electronic engineering , welfare , market economy
Beal’s (1995) method of estimating the value of Carnarvon Gorge for recreational use is re‐examined. When an inconsistency in her estimation procedure is corrected, the estimated value of Carnarvon Gorge for camping is found to be six times higher. The sensitivity of the estimate to the choice of functional form is examined, and standard errors and interval estimates for consumer surplus are provided. Comments are made about functional form choice and prediction in log‐log models.