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Estimating features of a distribution from binomial data

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  • Lewbel, Arthur
  • Linton, Oliver
  • McFadden, D. L.

Abstract

A statistical problem that arises in several fields is that of estimating the features of an unknown distribution, which may be conditioned on covariates, using a sample of binomial observations on whether draws from this distribution exceed threshold levels set by experimental design. Applications include bioassay and destructive duration analysis. The empirical application we consider is referendum contingent valuation in resource economics, where one is interested in features of the distribution of values (willingness to pay) placed by consumers on a public good such as endangered species. Sample consumers are asked whether they favor a referendum that would provide the good at a cost specified by experimental design. This paper provides estimators for moments and quantiles of the unknown distribution in this problem under both nonparametric and semiparametric specifications.

Suggested Citation

  • Lewbel, Arthur & Linton, Oliver & McFadden, D. L., 2006. "Estimating features of a distribution from binomial data," LSE Research Online Documents on Economics 4418, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:4418
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    More about this item

    Keywords

    Willingness to Pay; Contingent Valuation; Discrete Choice; Bi-nomial response; Bioassay; Destructive Duration Testing; Semiparametric; Nonparametric; Latent Variable Models;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods

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