Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Discrete and Continuous Preference Heterogeneity in a Kuhn-Tucker Model: Beach Recreational Demand

Discrete and Continuous Preference Heterogeneity in a Kuhn-Tucker Model: Beach Recreational Demand <p>ABSTRACT:</p><p>This study extended an existing Kuhn-Tucker (KT) model to integrate a mixture of discrete and continuous preference heterogeneity to address taste variations at individual and group levels. Specifically, we introduced random parameters into site quality attributes in a latent segmentation KT framework. In an empirical application to beach recreational demand, our proposed model statistically dominated other conventional specifications and revealed heterogeneous preferences for beach quality across and within groups. Our welfare analysis further showed that ignoring either the continuous or discrete component of the mixing distributions might lead to biased welfare estimates as well as opposite policy implications. (JEL Q51, C51)</p> http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Land Economics University of Wisconsin Press

Discrete and Continuous Preference Heterogeneity in a Kuhn-Tucker Model: Beach Recreational Demand

Land Economics , Volume 97 (3) – Dec 16, 2021

Loading next page...
 
/lp/university-of-wisconsin-press/discrete-and-continuous-preference-heterogeneity-in-a-kuhn-tucker-rl9Dq6Ngot

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
University of Wisconsin Press
Copyright
Copyright © Board of Regents of the University of Wisconsin System.
ISSN
1543-8325

Abstract

<p>ABSTRACT:</p><p>This study extended an existing Kuhn-Tucker (KT) model to integrate a mixture of discrete and continuous preference heterogeneity to address taste variations at individual and group levels. Specifically, we introduced random parameters into site quality attributes in a latent segmentation KT framework. In an empirical application to beach recreational demand, our proposed model statistically dominated other conventional specifications and revealed heterogeneous preferences for beach quality across and within groups. Our welfare analysis further showed that ignoring either the continuous or discrete component of the mixing distributions might lead to biased welfare estimates as well as opposite policy implications. (JEL Q51, C51)</p>

Journal

Land EconomicsUniversity of Wisconsin Press

Published: Dec 16, 2021

There are no references for this article.