Carnarvon Gorge: a comment on the sensitivity of consumer surplus estimation |
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| Authors: | Duangkamon Chotikapanich & William E Griffiths |
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| Institution: | Duangkamon Chotikapanich is at the School of Economics and Finance, Curtin University of Technology, Perth, Australia.,;William E. Griffiths is Professor of Econometrics at the Department of Econometrics at the University of New England, Armidale, NSW. |
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| Abstract: | Beal's (1995) method of estimating the value of Carnarvon Gorge for recreational use is re-examined. When an inconsistency in her estimation procedure is corrected, the estimated value of Carnarvon Gorge for camping is found to be six times higher. The sensitivity of the estimate to the choice of functional form is examined, and standard errors and interval estimates for consumer surplus are provided. Comments are made about functional form choice and prediction in log-log models. |
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