This paper has two objectives. First, we identify a problem with the ability of the discrete-continuous choice framework and conditional demand functions to fully describe consumer preferences in the presence of kinked budget constraints. Second, we propose and illustrate an alternative,...

This paper evaluates whether the property value capitalization effects measured with quasi-experimental methods offer reliable estimates of willingness to pay for changes in amenities. We propose the use of a market simulation as a robustness check. Two applications establish the method’s...

This paper exploits the seasonal and annual changes in marginal prices for water to estimate the price elasticity of demand by residential households for water. It uses the changes in distributions of water used at the census block group levels in response to changes in marginal prices of water...

This paper reviews research on nonmarket valuation. It seeks to gauge whether the methods are up to the tasks demanded of them and to identify new research priorities. The evaluation suggests that we can outline a protocol for implementing and using the methods with some resources, while for...

This paper argues that the belief that discrete contingent valuation (CV) questions yield substantially larger estimates of the mean (and the median) willingness to pay (WTP) for nonmarket resources in comparison to open-ended CV questions is unfounded. Monte Carlo experiments estimate the...

This paper reports the first test evaluating whether stated choices as part of a contingent valuation survey discriminate between significant and trivial causes. Using a random digit dialed sample for North Carolina, two different plans were posed to respondents-one to expand a popular North...