Estimating the benefit and the environmental quality preference in multinomial probit models using a simulation approach
✍ Scribed by Francisco Fernando Ribeiro Ramos
- Publisher
- John Wiley and Sons
- Year
- 1999
- Tongue
- English
- Weight
- 133 KB
- Volume
- 10
- Category
- Article
- ISSN
- 1180-4009
No coin nor oath required. For personal study only.
✦ Synopsis
Simulated maximum likelihood is used to estimate a random parameter multinomial probit model of destination choice for recreational ®shing trips, formulated to accommodate varying tastes and varying perceptions of environmental quality across individuals. The restricted likelihood ratio test strongly rejects the independent probit model, which is similar to the independent logit model in both the parameter and bene®t estimates. Furthermore, both the Krinsky±Robb and bootstrapping procedures suggest that the bene®t (standard deviation) of an environmental policy is found to be markedly lower (higher) when heterogeneous preferences are taken into account.