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Welfare calculations in models of the demand for sanitation

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  • Therese Hindman Persson

Abstract

Empirical and theoretical research on the demand for health inputs has been, and still is, extensive. However, it is not only important to analyse how household choice is affected by alternative and household specific attributes, but it is equally important to analyse the welfare implications of, for example, a change in the price of different inputs. Policymakers and donor agencies involved in sanitation programmes will typically be interested in the welfare implications of different policy alternatives. This paper analyses the welfare implications of a change in the price of certain sanitation related inputs. In addition, a comparison of the welfare estimates derived from the 'standard' approach, i.e. the conditional logit model and the more novel approach i.e. the random parameter/mixed logit model is undertaken. The findings suggest that model choice indeed has implications for the results since the welfare estimates from the two models differ quite remarkably.

Suggested Citation

  • Therese Hindman Persson, 2002. "Welfare calculations in models of the demand for sanitation," Applied Economics, Taylor & Francis Journals, vol. 34(12), pages 1509-1518.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1509-1518
    DOI: 10.1080/00036840110102752
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    Cited by:

    1. Joan L. Walker & Moshe Ben-Akiva & Denis Bolduc, 2007. "Identification of parameters in normal error component logit-mixture (NECLM) models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(6), pages 1095-1125.
    2. Mariel, Petr & Ayala, Amaya de & Hoyos, David & Abdullah, Sabah, 2013. "Selecting random parameters in discrete choice experiment for environmental valuation: A simulation experiment," Journal of choice modelling, Elsevier, vol. 7(C), pages 44-57.
    3. Sergio Colombo & Nick Hanley & Jordan Louviere, 2009. "Modeling preference heterogeneity in stated choice data: an analysis for public goods generated by agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 307-322, May.
    4. Martine Audibert & Yong He & Jacky Mathonnat, 2013. "Multinomial and Mixed Logit Modeling in the Presence of Heterogeneity: A Two-Period Comparison of Healthcare Provider Choice in Rural China," Working Papers halshs-00846085, HAL.
    5. Mário Jorge Cardoso de Mendonça & Ronaldo Seroa da Motta, 2005. "Saúde e Saneamento no Brasil," Discussion Papers 1081, Instituto de Pesquisa Econômica Aplicada - IPEA.

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