Wednesday, November 7, 2012

Contingent Valuation

Jerry Hausman (MIT) launches a broadside against contingent valuation in the latest Journal of Economic Perspectives: "From Dubious to Hopeless".

I do not expect that proponents and opponents of contingent valuation will ever agree. Some bad ideas in economics and econometrics maintain a surprising viability. Numerous branches of the federal government continue to fund contingent valuation research in the hope that it will support their favored policies subject to cost–benefifi t analyses. (p54)

There are two more articles in this issue--somewhat more positive-- and all are worth reading.

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