Output details
14 - Civil and Construction Engineering
University of Leeds
Assuring finite moments for willingness to pay in random coefficients models
Willingness to pay (WTP) is one of the key products of discrete choice modelling. In particular, mean WTP is a vital input to appraisals, but many published papers have found inadequate solutions, risking biased outputs and therefore incorrect appraisals of policy. This paper, with a distinguished American collaborator, specifies this inadequacy precisely in a theorem, illustrates the potential failings and suggests alternative approaches. The paper has already been referenced in publications in several fields of analysis (transport, health care, water management and several environmental fields) and was the most cited paper published in Transportation in 2012.