In this paper we examine the performance of nested logit models in the face of two specification errors. The first specification error arises when a nested logit model is appropriate, but the wrong nesting structure is chosen. The second specification error occurs when the underlying stochastic...

In this paper we examine the performance of nested logit models in the face of two specification errors. The first specification error arises when a nested logit model is appropriate, but the wrong nesting structure is chosen. The second specification error occurs when the underlying stochastic...

Global conditions under which nested logit models are consistent with utility maximization are provided by Daly and Zachary and by McFadden. Recently, Borsch-Supan and Herriges and Kling have provided conditions under which a nested logit model is locally consistent. However, previous work has...

The paper presents two simple models of dynamic consumer behavior, both taking into consideration the implications for welfare measurement when agents can delay transactions while obtaining additional information. One model studies the effect when a purchased good is non-perishable and can be...

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We study the optimal emission standards under uncertain pollution damages and transaction costs associated with policy changes in a dynamic setting. We consider three alternative forms of transactions costs and show that they can lead to different kinds of delays of policy changes or smaller...

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The growth in conservation programs has created a need for modeling frameworks capable of measuring microlevel behavioral responses and macrolevel landscape changes. This paper presents an empirical model that predicts farmers' production practices and the resulting levels of agricultural...

In this research, we adapt and extend previous work on nonparametric bounds for welfare measures. We present a procedure for estimating upper and lower bounds on each consumer's individual willingness to pay for an environmental improvement. The exciting aspect of this work is that these bounds...

This paper estimates the costs of implementing a broad ranging set of conservation practices on Iowa's landscape. A water quality model is combined with economic cost estimates to predict the improved water quality and costs associated with this set of conservation practices identified