EconStor >
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim >
ZEW Discussion Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/42219
  
Title:Consumer welfare and unobserved heterogeneity in discrete choice models: The value of alpine road tunnels PDF Logo
Authors:Cerquera Dussán, Daniel
Ullrich, Hannes
Issue Date:2010
Series/Report no.:ZEW Discussion Papers 10-095
Abstract:We investigate the sensitivity of consumer surplus estimates to parametric assumptions on individual preference heterogeneity in a discrete choice framework. We compare results from a parametric random coefficients logit model and a recently proposed nonparametric sieve estimator. In particular, we provide an assessment of the direct economic value of crossing the Alps for the European road freight sector. Using revealed preference data from a detailed survey on transalpine road freight traffic, we estimate the yearly cost of closing the Mont-Blanc Tunnel, which was closed for 3 years following a large accident in early 1999. Ultimately, our results permit the economic evaluation of security and transport policy measures affecting transalpine traffic. Our findings suggest that the way we model unobserved heterogeneity significantly affects our welfare results.
Subjects:Discrete Choice
Consumer Surplus
Nonparametric Estimation
Transalpine Freight
JEL:R41
C14
C35
L91
H54
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

Files in This Item:
File Description SizeFormat
640296815.pdf566.11 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/42219

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.