Estimating the Public Good Value of Preserving a Local Historic Landmark: The Role of Non-substitutability and Citizen Information

Kling, Robert W.; Revier, Charles F.; Sable, Karin

doi:10.1080/0042098042000256369

Cited by 44 publications

(35 citation statements)

References 30 publications

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“…Several authors have sought to measure those publicgood benefits of historic preservation using stated preference techniques such as contingent valuation (see, e.g., Chambers, Chambers, & Whitehead, 1998;Kling, Revier, & Sable, 2004).…”

Section: Previous Findingsmentioning

confidence: 99%

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Finding an Impact of Preservation Policies: Price Effects of Historic Landmarks on Attached Homes in Chicago, 1990-1999

Noonan

2007

Economic Development Quarterly

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The impact of landmark designation on prices of the property and its neighbors sits at the core of the policy debate and empirical research on historic preservation. Yet these studies suffer from serious methodological limitations and biases. First, as important unobserved characteristics likely correlate with landmark designation, an omitted-variable bias results. Second, if designations depend on property values or neighborhood housing market conditions, the endogenous selection process further undermines inferences about preservation policies’ effects. This article outlines more robust empirical strategies and presents new evidence on landmark designation effects on property values. For a sample of Chicago home sales during the 1990s, a hedonic price analysis suggests that landmark buildings and districts sell at a small premium. To address the omitted-variable bias, a repeat-sales approach demonstrates significant spillover effects of landmark designation on prices. These estimates are also robust to sample-selection bias and some forms of spatial autocorrelation.

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Section: Previous Findingsmentioning

confidence: 99%

“…These were found in studies like Kling, Revier, and Sable (2004) and Chambers, Chambers, and Whitehead (1998). a Contiguity defined as all observations within ¼ mile, or approx.…”

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confidence: 99%

Finding an Impact of Preservation Policies: Price Effects of Historic Landmarks on Attached Homes in Chicago, 1990-1999

Noonan

2007

Economic Development Quarterly

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“…Collins (Kling et al, 2001), as well as World Heritage Sites like Stonehenge (Maddison and Mourato, 2001) and the Fés Medina (Carson et al, 2002). Studies have surveyed values for the abstract, such as preserving grazing traditions in the Australian Alps (Lockwood et al, 1996), and the concrete, such as replacing a road with a tunnel at Stonehenge (Maddison and Mourato, 2001).…”

Section: Introductionmentioning

confidence: 99%

“…14. Kling et al (2001) test for information effects on WTP values by varying the amount of background description about the good. Riganti and Scarpa (1998) find that additional information helped respondents disentangle the complex goods in question, improving the internal consistency of their responses.…”

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confidence: 99%

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Noonan

2003

Journal of Cultural Economics

230

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Abstract:Contingent valuation methodology (CVM) has been increasingly applied to cultural resources. CVM employs survey methods to gather stated preference information, which can be used to estimate economic values of various cultural resources and projects. Although popular in other fields, the application of CVM in the cultural arena is relatively recent. This article summarizes this growing body of empirical literature and its range of findings. A meta-analysis gives a statistical view of the "state of the art" of the literature. This preliminary analysis sheds light on the consistency and validity of the use of this method in cultural applications. First, CVM is briefly and formally described. Second, a history and survey of the literature captures the breadth of research published thus far and highlights some findings. A few representative studies are described in greater detail. Third, the broader universe of CVM studies applied to cultural resources is described and analyzed in quantitative terms using a preliminary meta-analysis. 1 This meta-analytical approach allows for a more systematic accounting of the nature of these studies. Finally, the conclusion summarizes where the "state of the art" of CVM stands in the field of cultural economics. Keywords BackgroundCVM involves using surveys to elicit a willingness to pay (WTP) from individuals for hypothetical changes in some good or service. CVM is the most popular method in a family of alternative stated-preference techniques, known as "Choice Modeling" or "Conjoint Analysis."Generally, these surveys ask respondents to rate, rank, or choose among alternatives described in terms of various levels of attributes (Mazzanti, 2002). This paper considers all of these closely related methods but refers to "CVM" for brevity.The basic theoretical framework for CVM studies considers an individual (or household) utility function, u, as a function of market goods, x, and the level of a public good or service provided, q. where Q is a vector of survey characteristics, β and δ are vectors of regression coefficients, and ε is the error term. Statistical significance of β tests survey validity for variables that economic theory predicts would determine demand (income, substitutes, etc.). Likewise, tests of significance of δ can indicate sensitivity to changes in scope of q or other survey biases. The regression allows the estimation of a mean WTP, calculated at the sample or population mean of the independent variables collected from the survey. 3The dichotomous choice format, like a referendum, asks ("yes" or "no") whether WTP exceeds a specified amount. Econometrically, the probability of a "yes" response for a given dollar amount w (called a "bid" amount) is modeled as Pr(yes) = Pr(WTP + ε > w). The WTP response is typically regressed on a constant, w, X, and Q using logit, probit, or Weibull functions (see Giraud et al., 2001). This allows the calculation of a mean WTP parametrically at sample means.

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“…In addition, we assume that individuals are driven by a Bayesian updating mechanism and estimate WTP regression models that include variables capturing respondent prior beliefs about 2 See Navrud and Ready, 2002, and the 2003 special issue of the Journal of Cultural Economics on valuing cultural monuments. For example, CV has been used to value heritage improvements at holiday destinations (Signorello and Cuccia, 2002;Whitehead and Finney, 2003), visits and preservation of archaeological sites (Beltrán and Rojas, 1996;EFTEC, 1999;Signorello, 2000, 2002;Riganti and Willis, 2002), congestion and traffic scheme improvements at cultural monuments sites (Brown and Mourato, 2002;Maddison and Mourato, 2002;Scarpa et al, 1997;Willis, 1994), conservation of museums collections (Brown, 2004), preservation of historic buildings (Chambers et al, 1998;Garrod et al, 1996;Del Saz Salazaar and Marques, 2005;Grosclaude and Soguel, 1994;Kling et al, 2004;Pollicino and Maddison, 2004;Powe and Willis, 1996), preservation of religious buildings Pollicino and Maddison, 2002;Navrud and Strand, 2002), arts festivals (Snowball, 2005). Noonan (2003) and EFTEC (2005) summarize the empirical literature on contingent valuation of cultural monuments.…”

Section: Introductionmentioning

confidence: 99%

Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation

Alberini

Longo

2007

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation SummaryWe use contingent valuation to place a value on the conservation of built cultural heritage sites in Armenia. When we present the hypothetical scenario in the questionnaire we spell out what would happen to the monuments in the absence of the government conservation program. We posit that respondents combine such information with their own prior beliefs, which the questionnaire also elicits, and that the WTP for the good or program is likely to be affected by these updated beliefs. We propose a Bayesian updating model of prior beliefs, and empirically implement it using the data from our survey. We find that uncertainty about what would happen to the monument in the absence of the program results in lower WTP amounts.

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Estimating the Public Good Value of Preserving a Local Historic Landmark: The Role of Non-substitutability and Citizen Information

Cited by 44 publications

References 30 publications

Finding an Impact of Preservation Policies: Price Effects of Historic Landmarks on Attached Homes in Chicago, 1990-1999

Finding an Impact of Preservation Policies: Price Effects of Historic Landmarks on Attached Homes in Chicago, 1990-1999

Untitled

Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation

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