133View
27m 23sLenght
2Rating

Presenter: Rebecca Owusu, ARE postgraduate Abstract: Mixed logit models are becoming increasing popular but there is a practical challenge with estimating the distribution of willingness to pay (WTP) from these class of models. In this paper, we compare preference and WTP space approaches of dealing with the WTP challenges while accounting for farmers’ preferences. Using a data on choice of rice production practices in Ghana, we find that models in WTP space outperform the preference space models; nonetheless, the WTP estimates for the two models are comparable. On average, farmers have a preference for higher yields and higher gross margins, and are negatively affected by higher risk of crop failure and quantity of labour needed. We identify a considerable level of heterogeneity in farmers’ preferences that cannot be explained by any of the observable characteristics.