TY - JOUR
T1 - Estimation of the preference heterogeneity within stated choice data using semiparametric varying-coefficient methods
AU - Hoshino, Tadao
PY - 2013/12/1
Y1 - 2013/12/1
N2 - This study proposes the use of semiparametric varying-coefficient methods to estimate the preference heterogeneity within stated choice data. Semiparametric varying-coefficient methods have the potential to overcome the disadvantages of conventional random parameter models and latent class models. For binary probit models with varying coefficients, in particular, this study proposes an easy-to-compute local iterative least squares (LILS) approach, based on the expectation-maximization algorithm. The finite sample properties of the LILS estimator are assessed using Monte Carlo experiments. In order to demonstrate the practical usefulness of semiparametric varying-coefficient methods, we present an empirical study, conducting an economic valuation of a landscape with dichotomous choice contingent valuations.
AB - This study proposes the use of semiparametric varying-coefficient methods to estimate the preference heterogeneity within stated choice data. Semiparametric varying-coefficient methods have the potential to overcome the disadvantages of conventional random parameter models and latent class models. For binary probit models with varying coefficients, in particular, this study proposes an easy-to-compute local iterative least squares (LILS) approach, based on the expectation-maximization algorithm. The finite sample properties of the LILS estimator are assessed using Monte Carlo experiments. In order to demonstrate the practical usefulness of semiparametric varying-coefficient methods, we present an empirical study, conducting an economic valuation of a landscape with dichotomous choice contingent valuations.
KW - Dichotomous-choice contingent valuation
KW - Discrete choice models
KW - EM algorithm
KW - Preference heterogeneity
KW - Stated choice data
KW - Varying-coefficient models
UR - http://www.scopus.com/inward/record.url?scp=84888433864&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84888433864&partnerID=8YFLogxK
U2 - 10.1007/s00181-012-0646-5
DO - 10.1007/s00181-012-0646-5
M3 - Article
AN - SCOPUS:84888433864
VL - 45
SP - 1129
EP - 1148
JO - Empirical Economics
JF - Empirical Economics
SN - 0377-7332
IS - 3
ER -