IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v71y1989i2p414-421..html
   My bibliography  Save this article

Functional Form and the Statistical Properties of Welfare Measures

Author

Listed:
  • Wiktor L. Adamowicz
  • Jerald J. Fletcher
  • Theodore Graham-Tomasi

Abstract

This paper uses Monte Carlo analysis to compare the variance of consumer's surplus for several functional forms for demand. Although the semilog and linear forms fit the data well by statistical criteria, the coefficients of variation for consumer's surplus generated by these forms were substantially larger than for the double log and linear-log forms. While this paper is framed in the travel cost approach to recreational demand, there are implications for the choice of functional form whenever the measure of interest is a nonlinear transformation of the estimated parameters.

Suggested Citation

  • Wiktor L. Adamowicz & Jerald J. Fletcher & Theodore Graham-Tomasi, 1989. "Functional Form and the Statistical Properties of Welfare Measures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 414-421.
    • Handle: RePEc:oup:ajagec:v:71:y:1989:i:2:p:414-421.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1241599
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Elizabeth A. Wilman & Richard J. Pauls, 1987. "Sensitivity of Consumers' Surplus Estimates to Variation in the Parameters of the Travel Cost Model," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 35(1), pages 197-212, March.
    2. McConnell, Kenneth E., 1985. "The economics of outdoor recreation," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 15, pages 677-722, Elsevier.
    3. V. Kerry Smith & William H. Desvousges & Ann Fisher, 1986. "A Comparison of Direct and Indirect Methods for Estimating Environmental Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 280-290.
    4. Nancy E. Bockstael & Ivar E. Strand, Jr., 1987. "The Effect of Common Sources of Regression Error on Benefit Estimates," Land Economics, University of Wisconsin Press, vol. 63(1), pages 11-20.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Coyne, Alison & Adamowicz, Wiktor, 1989. "Economic Effects of Environmental Quality Change on Recreation Demand," Project Report Series 232082, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. Wiktor Adamowicz & Sarah Jennings & Alison Coyne, 1989. "A Sequential Choice Alternative to the Travel Cost Model," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 37(4), pages 1305-1305, December.
    3. Isabel Mendes, 2003. "Pricing Recreation use of National Parks for an efficient Nature Conservation and Application to the Portuguese case," Working Papers Department of Economics 2003/08, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    4. Herriges, Joseph A. & Phaneuf, Daniel J., 1999. "Controlling for Correlation Across Choice Occasions and Sites in a Repeated Mixed Logit Model of Recreation Demand," Western Region Archives 321717, Western Region - Western Extension Directors Association (WEDA).
    5. Clarke, Philip M., 1998. "Cost-benefit analysis and mammographic screening: a travel cost approach," Journal of Health Economics, Elsevier, vol. 17(6), pages 767-787, December.
    6. Catherine Heyes & Anthony Heyes, 1999. "Willingness to Pay Versus Willingness to Travel: Assessing the Recreational Benefits from Dartmoor National Park," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 124-139, January.
    7. Zhou, Yuyang & Wang, Peiyu & Zheng, Shuyan & Zhao, Minhe & Lam, William H.K. & Chen, Anthony & Sze, N.N. & Chen, Yanyan, 2024. "Modeling dynamic travel mode choices using cumulative prospect theory," Transportation Research Part A: Policy and Practice, Elsevier, vol. 179(C).
    8. Huang, Ju-Chin & Haab, Timothy C. & Whitehead, John C., 2004. "Risk Valuation in the Presence of Risky Substitutes: An Application to Demand for Seafood," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-16, April.
    9. Vaughan, William J. & Ardila, Sergio, 1993. "Economic Analysis of the Environmental Aspects of Investment Projects," IDB Publications (Working Papers) 6300, Inter-American Development Bank.
    10. Rulleau, Bénédicte & Dehez, Jeoffrey & Point, Patrick, 2011. "The tourist recreational demand for coastal forests: Do forests really matter?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 92(3).
    11. Whitehead, John C. & Haab, Timothy C. & Huang, Ju-Chin, 2000. "Measuring recreation benefits of quality improvements with revealed and stated behavior data," Resource and Energy Economics, Elsevier, vol. 22(4), pages 339-354, October.
    12. d'Arge, Ralph C. & Shogren, Jason F., 1989. "Okoboji experiment: Comparing non-market valuation techniques in an unusually well-defined market for water quality," Ecological Economics, Elsevier, vol. 1(3), pages 251-259, October.
    13. von Haefen, Roger H., 2003. "Incorporating observed choice into the construction of welfare measures from random utility models," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 145-165, March.
    14. Unterschultz, James & Kim, Renee & Quagrainie, Kwamena & Veeman, Michele, 1996. "International Commodity Marketing: South Korean Perceptions of Canadian, U.S., and Australian Beef," Agricultural Commodity Promotion Policies and Programs in the Global Agri-Food System, May 26-27, 1996, Cancun, Mexico 279652, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    15. Boyle, Kevin J., 1990. "Dichotomous-Choice, Contingent-Valuation Questions: Functional Form Is Important," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 19(2), pages 1-7, October.
    16. Bénédicte Rulleau & Jeoffrey Dehez & Patrick Point, 2011. "The tourist recreational demand for coastal forests: Do forests really matter?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 92(3), pages 291-310.
    17. Scrogin, David & Berrens, Robert P. & Bohara, Alok K., 2000. "Policy Changes And The Demand For Lottery-Rationed Big Game Hunting Licenses," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-19, December.
    18. Peters, T. & Adamowicz, Wiktor L. & Boxall, Peter C., 1995. "A Random Utility Analysis of Southern Alberta Sportfishing," Project Report Series 24048, University of Alberta, Department of Resource Economics and Environmental Sociology.
    19. Ehrlich, Oren & Bi, Xiang & Borisova, Tatiana & Larkin, Sherry, 2017. "A latent class analysis of public attitudes toward water resources with implications for recreational demand," Ecosystem Services, Elsevier, vol. 28(PA), pages 124-132.
    20. Kuwayama, Yusuke & Olmstead, Sheila & Zheng, Jiameng, 2022. "A more comprehensive estimate of the value of water quality," Journal of Public Economics, Elsevier, vol. 207(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:71:y:1989:i:2:p:414-421.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.