Dolan, Paul and Metcalf, Robert (2008) Comparing willingness-to-pay and subjective well-being in the context of non-market goods. CEP Discussion Paper, No. 890. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 9780853282976
|
PDF
Download (351kB) | Preview |
Abstract
In order to value non-market goods, economists estimate individuals’ willingness to pay (WTP) for these goods using revealed or stated preference methods. We compare these conventional approaches with subjective well-being (SWB), which is based on individuals’ ratings of their happiness or life satisfaction rather than on their preferences. In the context of a quasi- experiment in urban regeneration, we find that monetary estimates from SWB data are significantly higher than from revealed and stated preference data. Stigma in revealed preferences, mental accounting in stated preferences and unspecified duration in SWB ratings might explain some of the difference between the valuation methods.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://cep.lse.ac.uk/ |
| Additional Information: | © 2008 The authors |
| Subjects: | H Social Sciences > HB Economic Theory |
| Sets: | Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP) |
| Series: | Working Papers > CEP Discussion Papers |
| Date Deposited: | 06 Jul 2010 14:52 |
| Last Modified: | 14 Nov 2012 10:19 |
| URI: | http://eprints.lse.ac.uk/id/eprint/28504 |
Actions (login required)
 |
View Item |
Download Statistics
Download Statistics