CNRS

Eliciting Public Goods' Attributes Through Open-Ended Questions: Theoretical Framework and Econometrics.

Email address: luchini@ehess.cnrs-mrs.fr

Keywords: Composite environmental good, elicitation technique, memory, Discrete duration models, unobserved heterogeneity.

JEL Classifications: C25, C41, C42, Q26

Abstract:
How to make individuals reveal their preferred attributes on a composite public good could be an open question. Because this revelation mechanism is open, each agent, searching his memory, may rank a variable number of attributes. This paper firstly proposes a theoretical framework of memory which emphasizes two types of individuals: agents who recall exactly the attributes they prefer and those who can forget attributes. Secondly, we test this theoretical framework on data related to the recreational value of the Rhône Delta. This approach requires a specific econometric model whose properties are very closed to those of duration models in discrete time. We propose a model which takes account of individual observed heterogeneity. Following from this, we present a method to control for unobserved heterogeneity according to the Heckman-Singer strategy.We show that the two types of individuals are present in the population. Finally, we discuss the implications for public decision making.

PDF file of paper: Not available.

Session: Econometric Methods I

Time: Saturday, 7 July, 8am - 9:30am

Room: B