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Dears,
I developed a travel cost model comparing data which was collected before and after an ecological restoration. The aim is to determine if the restoration affected the recreational value of the natural area.
I used a pooled model, like in contingent travel cost model. The results are that dummy variable (expressing whether visitor is pre or post restoration) is significant and negative, whereas its interaction with cost is not significant.
I understand that being pre or post is influencing number of visits but it is not influencing the demand curve. Is this true?
Therefore, do these results mean that ecological restoration is not significantly affecting the value of a visit?
(I attach the results of the model)
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Thank you. Cost is a variable expressing the cost of a trip to the natural area, post_ER is a dummy variable expressing whether individual is surveyed before or after the ecological restoration. The aim of the model is to determine if restoration changed the demand curve (inferred from cost).
So, I understand that if post_ER is not interacting with cost, the demand curve of natural area is not influenced by ecological restoration, right?
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An analysis of households' preferences for improved solid waste management options. Eight choice sets were offered to each respondents.
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Here is one typical way. One variable identifies the subject (1 to n where n is the number of respondents), one variable identifies the number of the choice set (1 to 8 in your case), one variable identifies the choice within a set. For example if subjects choose between 3 options there should be rows 1, 2 and 3 for each choice set. For each attribute in the choice set there should be one variable. E.g. price, frequency of service, ... . Then there should be a variable that identifies the subjects' choice from the choice set. If the subjects ranked the items then you would use 1, 2, 3 etc. If the subjects were asked to simply choose one of the options then the entry is 1 for the item chosen and 0 for items not chosen. In addition you may have variables for age, etc. and any other items you recorded in the survey. So, in short if you have 8 choice sets and 3 items in each choice set you should have 8 x 3 rows for each subject. If you want a concrete example then look at Table 8.5 on page 223 of Applied Choice Analysis by Hensher et al. Alternatively https://www.capacityplus.org/files/resources/discrete-choice-experiment-user-guide.pdf Table 2.3 provides another illustration.
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Hello, While going through a couple of literature I found that the consumer surplus estimate in a TCM study, at times becomes very sensitive. What could be those factors causing the sensitivity and how to tackle the issue? Can anybody help?
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Hi Daisy,
To build on the previous answers I would say that TCM may be sensitive to three main effects. First, the time spent covering the distance to a recreational destination should be perceived as a cost (scarcity value) but may also be enjoyed as part of the recreational trip (commodity value) (see for instance McConnell, 1992).
Second, people who like to travel to a certain type of destination may decide to live near such destination, which contradicts the travel cost proxy. It's an endogeneity effect called "spatial sorting effect" (see for instance Baerenklau, 2010).
Third, the spatial context should ideally be controlled for as every location is different. Eligible substitutes to the primary site under valuation may exist at different distances and in different proportions (see for instance Jones et al., 2010). I have also studied substitutability in the case of outdoor recreation (see De Valck et al., 2016).
Hope this helps. Good luck!
References:
  • Baerenklau, K.A., Conzález-Cabán, A., Paez, C., Chavez, E., 2010. Spatial allocation of forest recreation value. Journal of Forest Economics 16(2), 113–126.
  • De Valck, J., Broekx, S., Liekens, I., De Nocker, L., Van Orshoven, J. & Vranken, L. 2016. Contrasting collective preferences for outdoor recreation and substitutability of nature areas using hot spot mapping. Landscape and Urban Planning, 151, 64-78.
  • McConnell, K.E., 1992. On-Site Time in the Demand for Recreation. American Journal of Agricultural Economics 74(4), 918–925.
  • Jones, A., Wright, J., Bateman, I., Schaafsma, M., 2010. Estimating Arrival Numbers for Informal Recreation: A Geographical Approach and Case Study of British Woodlands. Sustainability 2, 684–701.
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I am interested in post-acquisition performance indicator which could assist in evaluating an M&A deal of IT firm which develops software and applications. The company is private and not listed however I have financial information. Specifically for IT industry probably there are some measures to assess the target as a synergy potential and it might motivate sporting goods companies to acquire them? 
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Hello Olga,
ATKearney have a good wrap-up article on M&A performance measurement and in particular there is a graphic on relative important of different measures. I think its a good starting point:
In particular with IT industry I think the incentives would be harder to catch with standard financial ratios and one approach would be to analyze strategic options and even try to evaluate them.
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I have estimated mixed logit models for non-market valuation and got the marginal WTP values, but I want to do a Poe test between different samples, How to do it?
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What kind of software are you using? I can tell you how to do it in R.
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I am talking about some thing other than defining scenarios.
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I think that may be an issue of attribute level selection (getting the range of bid prices right), and model specification (main effects only or do certain attributes have interactions).
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Research and teaching undergraduates in economics the myth of endless growth?
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As luck would have it, I recently completed a paper that Dave Kimble laughed at when I said that "we may take land, energy, and time to be a linearly independent set of basis vectors in the three-dimensional vector space of economic value". However, since this is ResearchGate, I'll take a chance and submit the original version, which can be found at http://dematerialism.net/cc1.htm