Gaussian Quadrature Versus Simulation for the Estimation of Random Parameters


Book chapter


William S. Breffle, Edward R. Morey, Donald Waldman
Anna Alberini, Ricardo Scarpa, Applications of Simulation Models in Environmental and Resource Economics, Springer, 2005

DOI: https://link.springer.com/chapter/10.1007/1-4020-3684-1_17

Semantic Scholar DOI
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Cite

APA   Click to copy
Breffle, W. S., Morey, E. R., & Waldman, D. (2005). Gaussian Quadrature Versus Simulation for the Estimation of Random Parameters. In A. Alberini & R. Scarpa (Eds.) (Applications of Simulation Models in Environmental and Resource Economics). Springer. https://doi.org/https://link.springer.com/chapter/10.1007/1-4020-3684-1_17


Chicago/Turabian   Click to copy
Breffle, William S., Edward R. Morey, and Donald Waldman. “Gaussian Quadrature Versus Simulation for the Estimation of Random Parameters.” In , edited by Anna Alberini and Ricardo Scarpa. Applications of Simulation Models in Environmental and Resource Economics. Springer, 2005.


MLA   Click to copy
Breffle, William S., et al. Gaussian Quadrature Versus Simulation for the Estimation of Random Parameters. Edited by Anna Alberini and Ricardo Scarpa, Applications of Simulation Models in Environmental and Resource Economics, Springer, 2005, doi:https://link.springer.com/chapter/10.1007/1-4020-3684-1_17.


BibTeX   Click to copy

@inbook{william2005a,
  title = {Gaussian Quadrature Versus Simulation for the Estimation of Random Parameters},
  year = {2005},
  edition = {Applications of Simulation Models in Environmental and Resource Economics},
  publisher = {Springer},
  doi = {https://link.springer.com/chapter/10.1007/1-4020-3684-1_17},
  author = {Breffle, William S. and Morey, Edward R. and Waldman, Donald},
  editor = {Alberini, Anna and Scarpa, Ricardo}
}

Abstract: In environmental economics, numerical simulation using random draws is the method most commonly used to estimate joint probabilities of individual choices in discrete-choice, random-parameters models. This paper compares simulation to another method of estimation, Gaussian quadrature, on the basis of speed and accuracy. The comparison is done using stated preference data consisting of the answers to choice questions for fishing in Green Bay, a large bay on Lake Michigan. Each sampled individual chose between a pair of Green Bay scenarios with different fishing conditions. Quadrature is found to be as accurate as simulation based on random draws, but Gaussian quadrature attains stability in estimated parameters considerably faster.




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