Journal of Forest Economics > Vol 15 > Issue 43497

Testing the stability of the benefit transfer function for discrete choice contingent valuation data

D.I. Matthews, , dave.matthews@afbini.gov.uk W.G. Hutchinson, , g.hutchinson@qub.ac.uk R. Scarpa, , rscarpa@mngt.waikato.ac.nz
 
Suggested Citation
D.I. Matthews, W.G. Hutchinson and R. Scarpa (2009), "Testing the stability of the benefit transfer function for discrete choice contingent valuation data", Journal of Forest Economics: Vol. 15: No. 43497, pp 131-146. http://dx.doi.org/10.1016/j.jfe.2008.03.007

Published: 0/1/2009
© 0 2009 D.I. Matthews, W.G. Hutchinson, R. Scarpa
 
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Keywords
JEL Codes:Q26H41C25
Benefit function transferFunction stability testsTransfer reliabilityForest recreation valuesContingent valuationSplit sample
 

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In this article:
Introduction
Method
Stability of benefit transfer function
Results
Discussion and conclusions

Abstract

This paper examines the stability of the benefit transfer function across 42 recreational forests in the British Isles. A working definition of reliable function transfer is put forward, and a suitable statistical test is provided. A novel split sample method is used to test the sensitivity of the models’ log-likelihood values to the removal of contingent valuation (CV) responses collected at individual forest sites. We find that a stable function improves our measure of transfer reliability, but not by much. We conclude that, in empirical studies on transferability, considerations of function stability are secondary to the availability and quality of site attribute data. Modellers’ can study the advantages of transfer function stability vis-à-vis the value of additional information on recreation site attributes.

DOI:10.1016/j.jfe.2008.03.007