help singleb-------------------------------------------------------------------------------

Title

singleb-- Contingent Valuation using Single-Bounded Dichotomous Choice

Syntax

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

DescriptionThis command uses maximum likelihood (under the assumption of normality) to estimate the single-bounded dichotomous choice model for contingent valuation (Cameron and James, 1987). This command provides an alternative to the estimation via

probit. The main advantage of this procedure is that we directly obtain point estimates (and standard errors) of the marginal effect that a change in the explanatory variable has on WTP.

RemarksThe first variable in

varlistshould be the bid variable. The second variable should be the dummy for the response to the dichotomous choice question. The remaining variables will be interpreted as covariates or control variables.For the constant only model the constant represents the mean WTP. For the model with explanatory variables the mean WTP can be obtained by multiplying the mean vector of explanatory variables by the vector of estimated coefficients.

Examples

. singleb bid response

. singleb bid response x1 x2Use file singleb.dta to do the examples

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

ReferencesCameron, T. and M. James. 1987. Estimation Methods for "Closed-Ended" Contingent Valuation Surveys.

Review of Economics and Statistics69: 269-276.

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