Abstract
Roger H. von Haefen, Daniel J. Phaneuf, and George R. Parsons (2002) "Modeling
Consumer Demand for a Large Set of Quality Differentiated Goods:
Estimation and Welfare Results from a Systems Approach."
We develop an approach for estimating individual level preferences for
a large set of quality differentiated goods and for constructing Hicksian
welfare measure for price and quality changes within the demand system
framework. Our approach uses a simulated maximum likelihood
estimation procedure for recovering estimates of the structural parameters
and an adaptive Metropolis-Hastings algorithm for constructing Hicksian
consumer surplus estimates. We illustrate our approach with a
recreation data set consisting of day trips to 62 Mid-Atlantic beaches.
Last Modified Date: July 19, 2008
|
