IDEAS home Printed from https://ideas.repec.org/a/sae/medema/v18y1998i3p330-336.html
   My bibliography  Save this article

Nonparametric Willingness-to-pay Measures and Confidence Statements

Author

Listed:
  • Magnus Tambour
  • Niklas Zethraeus

Abstract

Willingness to pay (WTP) for a health care program can be estimated in contingent valuation (CV) studies by a nonparametric approach. The nonparametric approach is free from distributional assumptions, which is a strength compared with parametric regression-based approaches. However, using a nonparametric approach it is not clear how to obtain confidence statements for WTP estimates, for example, when testing hypotheses regarding differences in mean WTP for different subsamples. The authors propose a procedure that allows statistical testing and confidence interval estimation by employing bootstrap techniques. The method is easy to implement and has low computational costs with modern personal computers. The method is applied to data from a CV study where the WTP for hormone replacement therapy was investigated. The mean WTP was estimated for the full sample and separately for women with mild and severe menopausal symptoms. Using the proposed method, the mean WTP was significantly higher in the group with severe symptoms. Key words: bootstrap; economic evaluation; hormone replacement therapy; nonparametric; willingness to pay. (Med Decis Making 1998;18:330-336)

Suggested Citation

  • Magnus Tambour & Niklas Zethraeus, 1998. "Nonparametric Willingness-to-pay Measures and Confidence Statements," Medical Decision Making, , vol. 18(3), pages 330-336, August.
    • Handle: RePEc:sae:medema:v:18:y:1998:i:3:p:330-336
    DOI: 10.1177/0272989X9801800311
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0272989X9801800311
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0272989X9801800311?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Johansson,Per-Olov, 1995. "Evaluating Health Risks," Cambridge Books, Cambridge University Press, number 9780521478786, September.
    2. Johannesson, Magnus & Johansson, Per-Olov & Kristrom, Bengt & Gerdtham, Ulf-G., 1993. "Willingness to pay for antihypertensive therapy -- further results," Journal of Health Economics, Elsevier, vol. 12(1), pages 95-108, April.
    3. Johansson,Per-Olov, 1995. "Evaluating Health Risks," Cambridge Books, Cambridge University Press, number 9780521472852, September.
    4. Joseph C. Cooper, 1994. "A Comparison of Approaches to Calculating Confidence Intervals for Benefit Measures from Dichotomous Choice Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 70(1), pages 111-122.
    5. Timothy Park & John B. Loomis & Michael Creel, 1991. "Confidence Intervals for Evaluating Benefits Estimates from Dichotomous Choice Contingent Valuation Studies," Land Economics, University of Wisconsin Press, vol. 67(1), pages 64-73.
    6. Elise H. Golan & Mordechai Shechter, 1993. "Contingent Valuation of Supplemental Health Care in Israel," Medical Decision Making, , vol. 13(4), pages 302-310, December.
    7. Magnus Johannesson & Bengt Jönsson & Göran Karlsson, 1996. "Outcome measurement in economic evaluation," Health Economics, John Wiley & Sons, Ltd., vol. 5(4), pages 279-296, July.
    8. Gregory L. Poe & Eric K. Severance-Lossin & Michael P. Welsh, 1994. "Measuring the Difference (X — Y) of Simulated Distributions: A Convolutions Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 904-915.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Richard D. Smith, 2003. "Construction of the contingent valuation market in health care:a critical assessment," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 609-628, August.
    2. Karen Blumenschein & Glenn C. Blomquist & Magnus Johannesson & Nancy Horn & Patricia Freeman, 2008. "Eliciting Willingness to Pay Without Bias: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 114-137, January.
    3. Jan Abel Olsen & Richard D. Smith, 2001. "Theory versus practice: a review of ‘willingness‐to‐pay’ in health and health care," Health Economics, John Wiley & Sons, Ltd., vol. 10(1), pages 39-52, January.

    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. 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.
    2. Karen Blumenschein & GlennC. Blomquist & Magnus Johannesson & Nancy Horn & Patricia Freeman, 2008. "Eliciting Willingness to Pay Without Bias: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 114-137, January.
    3. Glenn Blomquist & Karen Blumenschein & Magnus Johannesson, 2009. "Eliciting Willingness to Pay without Bias using Follow-up Certainty Statements: Comparisons between Probably/Definitely and a 10-point Certainty Scale," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(4), pages 473-502, August.
    4. Zethraeus, Niklas & Johansson, Per-Olov, 1997. "Willingness to Pay for Hormone Replacement Therapy," SSE/EFI Working Paper Series in Economics and Finance 214, Stockholm School of Economics.
    5. Andy Choi, 2009. "Willingness to pay: how stable are the estimates?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(4), pages 301-310, November.
    6. David Whynes & Emma Frew & Jane Wolstenholme, 2005. "Willingness-to-Pay and Demand Curves: A Comparison of Results Obtained Using Different Elicitation Formats," International Journal of Health Economics and Management, Springer, vol. 5(4), pages 369-386, December.
    7. John Whitehead & Ju-Chin Huang & Glenn Blomquist & Richard Ready, 1998. "Construct Validity of Dichotomous and Polychotomous Choice Contingent Valuation Questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(1), pages 107-116, January.
    8. Choi, Andy S., 2011. "Implicit prices for longer temporary exhibitions in a heritage site and a test of preference heterogeneity: A segmentation-based approach," Tourism Management, Elsevier, vol. 32(3), pages 511-519.
    9. Hanemann, W. Michael & Kanninen, Barbara, 1996. "The Statistical Analysis Of Discrete-Response Cv Data," CUDARE Working Papers 25022, University of California, Berkeley, Department of Agricultural and Resource Economics.
    10. Blomquist, Glenn C. & Coomes, Paul A. & Jepsen, Christopher & Koford, Brandon C. & Troske, Kenneth R., 2014. "Estimating the social value of higher education: willingness to pay for community and technical colleges," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 5(1), pages 3-41, January.
    11. Samnaliev, Mihail & Stevens, Thomas H. & More, Thomas, 2006. "A comparison of alternative certainty calibration techniques in contingent valuation," Ecological Economics, Elsevier, vol. 57(3), pages 507-519, May.
    12. Leslie Richardson & John B. Loomis & Patricia A. Champ, 2013. "Valuing Morbidity from Wildfire Smoke Exposure: A Comparison of Revealed and Stated Preference Techniques," Land Economics, University of Wisconsin Press, vol. 89(1), pages 76-100.
    13. Hugh Gravelle & Dave Smith, 2001. "Discounting for health effects in cost–benefit and cost‐effectiveness analysis," Health Economics, John Wiley & Sons, Ltd., vol. 10(7), pages 587-599, October.
    14. Kline, Jeffrey D. & Alig, Ralph J. & Johnson, Rebecca L., 2000. "Forest owner incentives to protect riparian habitat," Ecological Economics, Elsevier, vol. 33(1), pages 29-43, April.
    15. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    16. Richard D. Smith, 2007. "The role of 'reference goods' in contingent valuation: should we help respondents to 'construct' their willingness to pay?," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1319-1332.
    17. Olivier Chanel & Pascale Scapecchi & Jean-Christophe Vergnaud, 2006. "How to correctly assess mortality benefits in public policies," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 49(5), pages 759-776.
    18. W. George Hutchinson & Riccardo Scarpa & Susan M. Chilton & T. McCallion, 2001. "Parametric and Non‐Parametric Estimates of Willingness to Pay for Forest Recreation in Northern Ireland: A Discrete Choice Contingent Valuation Study with Follow‐Ups," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 104-122, January.
    19. Bleichrodt, Han & Crainich, David & Eeckhoudt, Louis, 2003. "Comorbidities and the willingness to pay for health improvements," Journal of Public Economics, Elsevier, vol. 87(11), pages 2399-2406, October.
    20. Klose, Thomas, 1999. "The contingent valuation method in health care," Health Policy, Elsevier, vol. 47(2), pages 97-123, May.

    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:sae:medema:v:18:y:1998:i:3:p:330-336. 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: SAGE Publications (email available below). General contact details of provider: .

    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.