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Statistical Properties of Welfare Measures from Count‐Data Models of Recreation Demand
Author(s) -
Yen Steven T.,
Adamowicz Wiktor L.
Publication year - 1993
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349443
Subject(s) - recreation , count data , welfare , economics , econometrics , statistical analysis , statistics , mathematics , political science , law , market economy , poisson distribution
This article compares estimates and distributions of consumer surplus measures derived from truncated and untruncated count‐data models. Large differences between the means and variances of the consumer surplus estimates of the truncated and untruncated models were found. Mathematical approximation provides reasonable estimates of the mean consumer surplus measures, but approximation of the variances is poor due to truncation errors. These findings suggest that consumer surplus measures derived from the truncated estimator should be viewed with caution.