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Revealed preference valuation compared to contingent valuation: radon-induced lung cancer prevention

✍ Scribed by Christine A. Kennedy


Publisher
John Wiley and Sons
Year
2002
Tongue
English
Weight
154 KB
Volume
11
Category
Article
ISSN
1057-9230

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✦ Synopsis


Abstract

This paper explores and compares two tools of economic valuation, revealed preference and contingent valuation, with the purpose of ultimately informing the use of two methods of economic evaluation, CEA and CBA. The valuation methods are applied to empirical data for radon‐induced lung cancer prevention. However, only the single bound CV and the subjective revealed preference estimates have overlapping confidence intervals, indicating that they do have external validity as assessed by convergent validity. The revealed preference subjective risk valuation was (£180 (£144, £247)) and the single bounded contingent valuation estimate was (£269 (£201, £343)). Copyright © 2002 John Wiley & Sons, Ltd.