help doubleb-------------------------------------------------------------------------------

Title

doubleb-- Contingent Valuation using Double-Bounded Dichotomous Choice

Syntax

doublebvarlist[if] [in] [weight] [,level(#)noconstant]

DescriptionThis 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.

RemarksThe first and second variables in

varlistshould 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}

Examples

. doubleb bid1 bid2 response1 response2

. doubleb bid1 bid2 response1 response2 x1 x2Use file doubleb.dta to do the examples

AuthorAlejandro Lopez-Feldman Centro de Investigacion y Docencia Economicas, CIDE Email: lopezfeldman@gmail.com

ReferencesHanemann, M., Loomis, J and B. Kanninen. 1991. Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation.

AmericanJournal of Agricultural Economics73: 1255-63.Haab, T. and K, McConnell. 2002.

Valuing Environmental and NaturalResources. The Econometrics of Non-Market Valuation.Edward Elgar, Massachusetts.

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