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Specification Bias in Contingent Valuation from Omission of Relative Price Variables

ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
John Whitehead Ph.D., Professor (Creator)
Institution
Appalachian State University (ASU )
Web Site: http://www.library.appstate.edu/

Abstract: The specification bias from omission of relative price variables in contingent valuation functions is investigated. Omitted variable bias will cause the determinants of willingness to pay (WTP) to assume zero. The omission of relative price variables constitute policy implications. Forecast values of WTP values will be biased when empirical WTP functions are used. The effects of relative prices in empirical valuation functions should be included in future studies of contingent valuation.

Additional Information

Publication
Whitehead, John C., Thomas J. Hoban and William B. Clifford. (1994) Specification Bias in Contingent Valuation from Omission of Relative Price Variables, Southern Economic Journal, 60(4): 995-1009. Published by the Southern Economic Association (ISSN: 0038-4038).
Language: English
Date: 1994