COMMENT ON CAMERON CENSORED LOGISTIC-REGRESSION MODEL FOR REFERENDUM DATA

T. A. Cameron (A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression, J. Environ. Econom. Management 15, 355-379 (1988)) presents what she terms a new paradigm for interpreting referendum data derived from contingent valuation surveys for nonmarket resources. We show that since her model is a reparameterization of the usual logistic regression model, asymptotic standard errors can be derived for the maximum likelihood estimators of the parameters in either model from the other. We also argue that computational convenience in deriving demand relationships or elasticities depends more on the choice of welfare measure than on the choice of a parameterization. © 1991.