help singleb

Title

singleb -- Contingent Valuation using Single-Bounded Dichotomous Choice

Syntax

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

Description

This 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.

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

Remarks

The first variable in varlist should 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 x2

Use file singleb.dta to do the examples

Author

Alejandro Lopez-Feldman

Centro de Investigacion y Docencia Economicas, CIDE

Email: lopezfeldman@gmail.com

Conditions of use

singleb 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. 2011. singleb: Stata module to estimate contingent valuation using Single-Bounded Dichotomous Choice Model. Available at http://ideas.repec.org/c/boc/bocode/s457298.html

References

Cameron, T. and M. James. 1987. Estimation Methods for "Closed-Ended"
Contingent Valuation Surveys. Review of Economics and Statistics 69: 269-276.

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.

Acknowledgments

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