تجزیه شناسایی ساختاری ارزش های غیربازاری

This paper addresses the issue of transparency in structural modeling by investigating how the assumptions of a structural model contribute to its identification of non-market values. Assumptions about the form of the utility function, the depiction of preference heterogeneity, and the definition for the choice set are shown to jointly identify a partition of preference space which explains observed behavior. The borders of the partition reflect substitution patterns. The regions in the partition set-identify preferences. Assumptions about the distribution of preferences within each region point-identify partial equilibrium welfare measures. Together, these observations provide a framework for decomposing the structural identification of non-market values. The new framework allows analysts to explain how their modeling assumptions influence estimates for benefits and costs. This addresses federal guidelines for quantifying uncertainty in the modeling assumptions which enter benefit-cost analysis. The framework is demonstrated by decomposing estimates of the MWTP for air quality.

People differ in their preferences for amenities, they interact with their neighbors, and they adjust their behavior in response to large changes in health risk and environmental quality. Recent advances in discrete-choice modeling have allowed us to incorporate these basic notions about consumer behavior into models of the demand for non-market goods and services. While the new models can produce benefit estimates which reflect preference heterogeneity, social interactions, and general equilibrium adjustment, their increasing econometric complexity can make it difficult to understand how welfare measures are actually identified. This tradeoff is exemplified by equilibrium sorting models of household location choice.

Structural assumptions matter for benefit measurement. This paper has illustrated how the assumptions of a structural model influence estimates for partial equilibrium welfare measures. The parametric form of the utility function, the depiction of preference heterogeneity, and the definition for the choice set were shown to jointly identify a partition of preference space which explains observed behavior. The borders of the partition reflect the substitution patterns conveyed by the form of heterogeneity. The regions of the partition set-identify preferences. Maintained assumptions about the distribution of preferences within each region are what point-identify welfare measures for policy changes. Together, these observations provide a new framework for decomposing the identification of non-market values. This framework is not limited to equilibrium sorting models of household location choice. It applies to the broad class of structural discrete-choice models used for non-market valuation which also includes random utility models, structural hedonic models, and corner solution models.