Ideology, public goods and welfare valuation: An experiment on allocating government budgets. (September 2016)

• Record Type: Journal Article
• Authors: Ozdemir, Semra; Johnson, F. Reed; Whittington, Dale
• Is Part Of: Journal of choice modelling. Volume 20(2016)
• Page Start: 61
• Page End: 72
• Publication Date: 2016-09
• Subjects: Discrete choice experiment -- Public goods -- Ideology -- Budget allocation -- Willingness to pay; Decision making -- Periodicals; Social choice -- Periodicals; Decision making; Social choice; Periodicals; 302.13
• DOI: 10.1016/j.jocm.2016.07.003
• Languages: English
• ISSNs: 1755-5345

Abstract

Abstract: This study demonstrates how experimental survey methods can be used to assess preferences for budget-constrained combinations of public and publicly provided goods and services. The study shows how to calculate welfare changes based on preferences for increases and decreases in programs within particular budget portfolios, and quantifies the effect of ideology on valuations of public programs. The findings show that respondents, including conservatives, were reluctant to approve of cuts when they were faced with the exact definition of what they needed to give up or how a decrease would affect the provision of services. Highlights: We show how to use discrete choice experiment to calculate welfare changes based on preferences for increases and cuts in government programs. Respondents, including conservatives, were reluctant to approve of program cuts. Preferences for program increases and cuts exhibited strong asymmetry.