Protesting or justifying? A latent class model for contingent valuation with attitudinal data

• Autor(a) principal: Cunha-e-Sá, Maria A.
• Data de Publicação: 2010
• Outros Autores: Madureira, Lívia, Nunes, Luis Catela, Otrachshenko, Vladimir
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/11247
• topic: Public goods; Quality of institutions; Protest responses; Contingent valuation; Justification bias; Latent class model

This article develops a latent class model for estimating willingness-to-pay for public goods using simultaneously contingent valuation (CV) and attitudinal data capturing protest attitudes related to the lack of trust in public institutions providing those goods. A measure of the social cost associated with protest responses and the consequent loss in potential contributions for providing the public good is proposed. The presence of potential justification biases is further considered, that is, the possibility that for psychological reasons the response to the CV question affects the answers to the attitudinal questions. The results from our empirical application suggest that psychological factors should not be ignored in CV estimation for policy purposes, allowing for a correct identification of protest responses.