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Swedish National Road & Transport Research Institute (VTI) Working Papers, Swedish National Road & Transport Research Institute (VTI)

No 2007:14:
Private and Public WTP for Safety - A Validity Test

Henrik Andersson ()

Abstract: To elicit an affected population's preferences for, e.g., better health or environment stated preference (SP) methods are often used. SP methods are based on hypothetical market settings which necessitates validity tests of the results. This study describes a validity test on the basis of theoretical predictions and empirical findings for private and public safety measures. According to the test, public willingness to pay (WTP) should exceed private WTP.

Keywords: Private; Public; Safety paternalism; Stated preferences; Willingness to pay; (follow links to similar papers)

JEL-Codes: D61; D64; I10; (follow links to similar papers)

8 pages, October 19, 2007

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