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Using Probabilistic Stated Preference Analyses to Understand Actual Choices

Romuald Meango

arXiv 26 Jul 2023 · Econometrics

arXiv:2307.13966 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Can stated preferences help in counterfactual analyses of actual choice? This research proposes a novel approach to researchers who have access to both stated choices in hypothetical scenarios and actual choices. The key idea is to use probabilistic stated choices to identify the distribution of individual unobserved heterogeneity, even in the presence of measurement error. If this unobserved heterogeneity is the source of endogeneity, the researcher can correct for its influence in a demand function estimation using actual choices, and recover causal effects. Estimation is possible with an off-the-shelf Group Fixed Effects estimator.

Citation extraction

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Bonhomme, S., Lamadon, T., and Manresa, E (2022) Discretizing unobserved heterogeneity1.00053100%
2Bernheim, B. D., Björkegren, D., Naecker, J., and Pollmann, M (2021) Causal inference from hypothetical evaluations0.87452100%
3Briggs, J., Caplin, A., Leth-Petersen, S., Tonetti, C., and Violante… (2020) Estimating marginal treatment effects with survey instruments0.81142100%
4Evdokimov, K (2010) Identification and estimation of a nonparametric panel data model with unobserved heterogeneity0.81142100%
5Méango, R (2023) Identification of ex ante returns using elicited choice probabilities0.81142100%
6Blass, A. A., Lach, S., and Manski, C. F (2010) Using elicited choice probabilities to estimate random utility models: Preferences for electricity reliability0.73732100%
7Chernozhukov, V., Fernández-Val, I., and Melly, B (2013) Inference on counterfactual distributions0.64422100%
8Kotlarski, I (1967) On characterizing the gamma and the normal distribution0.64422100%
9Alms, I., Attanasio, O., and Jervis, P (2023) Economics and measurement: New measures to model decision making0.58531100%
10Ameriks, J., Briggs, J., Caplin, A., Lee, M., Shapiro, M. D., and To… (2020) Older americans would work longer if jobs were flexible0.51121100%

Showing the top 10 of 43 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Just Ask Them Twice: Choice Probabilities and Identification of Ex ante returns and Willingness-To-Pay0.40511