Document Type

Article

Publication Version

Published Version

Publication Date

2-1999

Journal or Book Title

Review of Economics and Statistics

Volume

81

Issue

1

First Page or Article ID Number

62

Last Page

72

DOI

10.1162/003465399767923827

Abstract

Random utility models (RUMs) are used in the literature to model consumer choices from among a discrete set of alternatives, and they typically impose a constant marginal utility of income on individual preferences. This assumption is driven partially by the difficulty of constructing welfare estimates in models with nonlinear income effects. Recently, McFadden (1995) developed an algorithm for computing these welfare impacts using a Monte Carlo Markov chain simulator for generalized extreme-value variates. This paper investigates the empirical consequences of nonlinear RUMs in the case of sportfishing modal choice, while refining and contrasting the available methods for welfare estimation.

Comments

This article is from Review of Economics and Statistics 81 (1999): 62, doi:10.1162/003465399767923827. Posted with permission.

Copyright Owner

MIT Press

Language

en

File Format

application/pdf

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