help doubleb

Title

doubleb -- Contingent Valuation using Double-Bounded Dichotomous Choice

Syntax

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

Description

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.

For more details on the use of the command see Lopez-Feldman (2012) or Lopez-Feldman(2013).

Remarks

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 individual has answered to the first bid.

Examples

. doubleb bid1 bid2 response1 response2

. doubleb bid1 bid2 response1 response2 x1 x2

Use file doubleb.dta to do the examples

Author

Alejandro Lopez-Feldman

Centro de Investigacion y Docencia Economicas, CIDE

Email: lopezfeldman@gmail.com

Conditions of use

doubleb is not an official Stata command. There is no warranty and the author cannot accept any responsability for the use of this software.

Software should be cited at all times.

Suggested citation

Please cite as:

Lopez-Feldman, A. 2010. doubleb: Stata module to estimate contingent valuation using Double-Bounded Dichotomous Choice Model. Available at http://ideas.repec.org/c/boc/bocode/s457168.html

References

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.

Lopez-Feldman, A., 2012 Introduction to contingent valuation using Stata MPRA paper 41018. Available at http://ideas.repec.org/p/pra/mprapa/41018.html

Lopez-Feldman, A., 2013 Introduccion a la valoracion contingente utilizando Stata en Mendoza, A. Aplicaciones en economia y ciencias sociales con Stata. Stata Press.

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

Acknowledgments

I thank Brett Day for sharing the Stata code that helped me to get started writing this command.