WSSA WTP Presentation S12

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/


2/20

Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


Conclusions

1 Motivation

2 Data Collection

3 Descriptive Results

4 Scaling Analysis

5 Initial Inferential Results

6 Conclusions

http://find/http://goback/


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Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


Conclusions

Motivation

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4/20

Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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

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Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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

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6/20

Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


Conclusions

Data Collection

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Willingness-

to-Tolerate


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Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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

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8/20

Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


Conclusions

Descriptive Results

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Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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



10/20

Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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

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11/20

Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


Conclusions

Willingness to Wait

Government should take

stronger steps incontrolling nuclearmaterials, even if it meanslonger waits for you whenentering the country.



12/20

Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


Conclusions

Willingness to Sacrifice Privacy

Government should take

stronger steps incontrolling nuclearmaterials, even if it meansgiving up some of yourpersonal privacy.



13/20

Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


Conclusions

Scaling Analysis



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Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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

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Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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

http://goforward/http://find/


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to-Tolerate


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Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


Conclusions

Initial Inferential Results

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Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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?

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Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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

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Willingness-

to-Tolerate


ough

Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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

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Outline

Motivation

DataCollection

DescriptiveResults

ScalingAnalysis


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?

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Documents

WSSA WTP Presentation S12