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dc.contributor.author
Lanz, Bruno
dc.date.accessioned
2017-06-11T21:16:09Z
dc.date.available
2017-06-11T21:16:09Z
dc.date.issued
2015
dc.identifier.uri
http://hdl.handle.net/20.500.11850/107035
dc.description.abstract
In response to the perceived quality of a public good, households may choose to incur avertive expenditures as a substitute to its aggregate provision, thereby revealing an (inverse) demand function. When unobserved heterogeneity affects both perceived quality and avertive behavior, identification of the demand function is plagued by a problem of endogeneity. In this paper, I propose to use a first stage model of perceived quality as a function of objective quality to recover unbiased and microconsistant estimates of marginal willingness to pay for the provision of the public good. The approach can be applied when people have well-formed perceptions of the quality of the good, a prerequisite for the avertive expenditures method. I illustrate the approach with data on avertive expenditures for two qualitative aspects of household tap water networks: water hardness and aesthetic quality in terms of taste and odor.
dc.language.iso
en
dc.publisher
Graduate Institute Geneva ; Center for International Environmental Studies CIES
dc.subject
Public good provision
dc.subject
Avertive expenditures
dc.subject
Revealed preferences
dc.subject
Perceived quality
dc.subject
Objective quality
dc.subject
Water hardness
dc.subject
Aesthetic water quality
dc.subject
Water regulation
dc.title
Using avertive expenditures to estimate the demand for public goods
dc.type
Working Paper
ethz.title.subtitle
Combining objective and perceived quality
ethz.journal.title
CIES Working Paper
ethz.journal.volume
36
ethz.size
28 p.
ethz.publication.place
Geneva
ethz.publication.status
published
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03877 - Bommier, Antoine / Bommier, Antoine
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03877 - Bommier, Antoine / Bommier, Antoine
ethz.date.deposited
2017-06-11T21:17:13Z
ethz.source
ECIT
ethz.identifier.importid
imp593653b377b3962687
ethz.ecitpid
pub:167463
ethz.eth
no
ethz.availability
Metadata only
ethz.rosetta.installDate
2017-07-18T13:00:54Z
ethz.rosetta.lastUpdated
2018-11-02T20:36:09Z
ethz.rosetta.versionExported
true
ethz.COinS
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