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A micro-econometric framework for Participatory Value Evaluation

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  • Dekker, Thijs
  • Koster, Paul
  • Mouter, Niek

Abstract

This paper presents a micro-econometric framework to analyse choice data from participatory value evaluation (PVE) surveys. In a PVE survey respondents receive, similar to stated choice surveys, information on the social impacts of public sector projects before choosing the best policy portfolio according to their preferences. Respondents’ choices are limited by governmental and private budget constraints. The PVE data format is characterised by a mixture of discrete and continuous choice data. Building on recent literature of Kuhn–Tucker models, particularly the MDCEV model, a range of methodological and econometric contributions are provided facilitating model estimation and policy evaluation. We derive a set of closed form choice probabilities explaining the choice for the optimal portfolio with public projects, private consumption levels and whether to spend the public budget in full or not. The proposed policy evaluation framework is centred around the notion of social welfare maximisation. The parameter estimates are used to derive the optimal public sector budget and the corresponding portfolio maximising social welfare, but also to rank the set of feasible portfolios given a restricted budget, including sensitivity analyses. The proposed framework is illustrated using an empirical example on urban mobility investments in Amsterdam, The Netherlands.

Suggested Citation

  • Dekker, Thijs & Koster, Paul & Mouter, Niek, 2024. "A micro-econometric framework for Participatory Value Evaluation," Journal of choice modelling, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:eejocm:v:52:y:2024:i:c:s1755534524000393
    DOI: 10.1016/j.jocm.2024.100507
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    References listed on IDEAS

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    More about this item

    Keywords

    Participatory value evaluation; Portfolio choice; Discrete-continuous choice models; Policy evaluation; Social welfare;
    All these keywords.

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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