Post on 05-Apr-2018
8/2/2019 WSSA WTP Presentation S12
1/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Alternatives to Willing-to-Pay Measures for
Homeland Security
Scott E. Robinson and James W. Stoutenborough
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
2/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
1 Motivation
2 Data Collection
3 Descriptive Results
4 Scaling Analysis
5 Initial Inferential Results
6 Conclusions
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/http://goback/8/2/2019 WSSA WTP Presentation S12
3/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Motivation
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
4/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Public Assessments of the Costs of Policy
How much is it worth to keep a local park open?
Contingent valuation and willingness to pay techniques
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
5/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Our Approach
Contingency evaluation and monetization
What about non-monetary costs?Our core interest is in whether the dynamics ofwillingness to pay varies from the willingness to toleratenon-monetary costs
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
6/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Data Collection
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
7/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Survey Information
National random-digit phone survey conducted by thePublic Policy Research Institute at Texas A&M Universityin association with the Institute of Science, Technologyand Public Policy (also at Texas A&M University) inAugust 2009
Funding provided by the Domestic Nuclear DetectionOffice (a component of DHS)
Large survey with a variety of components including a
demographic profile, political opinions, and embeddedsurvey experiments
N = 924
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
8/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Descriptive Results
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
9/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Three Dimensions of Costs
Please tell me whether you would be very willing,somewhat willing or not willing to accept the following
government activities to reduce the risk of nuclearmaterials falling into the hands of terrorists:
Willingness to pay moreWillingness to waitWillingness to sacrifice personal privacy
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/http://goback/8/2/2019 WSSA WTP Presentation S12
10/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Willingness to Pay
Government should takestronger steps incontrolling nuclear
materials, even if it meanshigher prices for you onimported goods.
Not state of the art forWTP questions butcomparable to the nextpair
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
11/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Willingness to Wait
Government should take
stronger steps incontrolling nuclearmaterials, even if it meanslonger waits for you whenentering the country.
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/http://goback/8/2/2019 WSSA WTP Presentation S12
12/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Willingness to Sacrifice Privacy
Government should take
stronger steps incontrolling nuclearmaterials, even if it meansgiving up some of yourpersonal privacy.
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/http://goback/8/2/2019 WSSA WTP Presentation S12
13/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Scaling Analysis
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/http://goback/8/2/2019 WSSA WTP Presentation S12
14/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Assumptions of a Scale Analysis
The basic assessment for scale analysis is whether there isa single (or definable) factor that underlies a series ofsimilar measures stated informally:
itemi,j = j + i + i,j
A specific response from person j on item i is a product ofa common factor , an item-specific component i and anerror term i,j
Factor extraction tries to pull j out of the noisy indicatoritemi,j
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
15/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Assumptions of a Scale Analysis
Factor analysis (principal component) with varimaxrotation
Single factor (second eigenvalue is negative)
Factor correlations (.637, .705, .554)
Uniqueness (.594, .504, .693)
The single factor model behaves well (recovering j from
the three measures) with balanced correlations anduniqueness
Robinson and Stoutenborough Willingness-to-Tolerate
http://goforward/http://find/8/2/2019 WSSA WTP Presentation S12
16/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Initial Inferential Results
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
17/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Expectations for Inferential Models
There does seem to be a single common factor to these
measures
Do the item specific components correlate with differentvariables?
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
18/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Expectations for Inferential Models
Any different response is an indication of either:
1 noise2 substantive differences in individual responses to specific
costs
Our exploratory assumption is that if the differences aresystematic, they are of the second type
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
19/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Summary of the Initial Models
Prediction of willingness based on some basicdemographics
NO factor is significant in all models
Ideology (controlling for party ID) is positively related towillingness to waitMales are less willing to waitEducation level is negative related to willingness to wait orgive up privacyAge is positively related to the willingness to pay or giveup privacy
Income is positively related to willingness to pay or give upprivacy
NOTE: This is all still quite preliminary
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/8/2/2019 WSSA WTP Presentation S12
20/20
Willingness-
to-Tolerate
Robinson andStoutenbor-
ough
Outline
Motivation
DataCollection
DescriptiveResults
ScalingAnalysis
InitialInferentialResults
Conclusions
Conclusions
There does seem to be a common factor across willingnessmeasures
However, the item-specific component vary systematicallyacross respondents
Is this item-sensitivity that should be factored out orinteresting substantive differences in item-sensitivity?
Robinson and Stoutenborough Willingness-to-Tolerate
http://find/