help doubleb


doubleb -- Contingent Valuation using Double-Bounded Dichotomous Choice


doubleb varlist [if] [in] [weight] [, level(#) noconstant ]


This command uses maximum likelihood (under the assumption of normality) to estimate the double-bounded dichotomous choice model for contingent valuation proposed by Hanemann, Loomis and Kanninen (1991). Haab and McConnell (2002, pp. 123-125) refer to this as the Interval Data Model.


The first and second variables in varlist should be the first and second bid variables, respectively. The third and fourth variables should be the dummies for the response to the first and second dichotomous choice questions, respectively. The remaining variables will be interpreted as covariates or control variables.

Note that the second bid variable refers to the actual bid offered after the in > dividual has answered to the first bid.{p_end}


. doubleb bid1 bid2 response1 response2

. doubleb bid1 bid2 response1 response2 x1 x2

Use file doubleb.dta to do the examples


Alejandro Lopez-Feldman Centro de Investigacion y Docencia Economicas, CIDE Email:


Hanemann, M., Loomis, J and B. Kanninen. 1991. Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation. American Journal of Agricultural Economics 73: 1255-63.

Haab, T. and K, McConnell. 2002. Valuing Environmental and Natural Resources. The Econometrics of Non-Market Valuation. Edward Elgar, Massachusetts.


I thank Brett Day for sharing the Stata code that helped me to get