Working Papers

The WNE Working Papers series has been published by the Faculty of Economic Sciences at the University of Warsaw since 2008.

The WNE Working Papers series provides a fast, open channel for disseminating research conducted at the Faculty of Economic Sciences, University of Warsaw. The papers hosted here are working versions (pre-prints) and may evolve as authors refine their analyses, incorporate feedback, or progress through formal peer-review. What you read is the current version released by the authors, timestamped and assigned DOI/ISSN identifiers to ensure precise citation and version tracking. Copyright remains with the authors, who may, at any time, upload a revised file or add a note directing readers to a later, peer-reviewed publication.

The Working Papers series accepts articles by research employees of the Faculty and publications from conferences organised at the Faculty of Economic Sciences at the University of Warsaw. Articles should be original research papers which have not been previously published, on the subject of economics.

Please send your paper by e-mail: E5O$+X/sF!P6=St0g[RrjiHUqac]#[9!BlpGqd~p2&.jlyMdHjsO&KzRP 

Please send 2 files:

(1) the main text without the title of the article and the authors (DOC/DOCX file) and

(2) the title page including: the title of the paper, the authors and their affiliation (DOC/DOCX file).

Please read the detailed editing requirements before submitting your text. 

Number of Results 3

WP(6/2020)312. Payment and policy consequentiality in dichotomous choice contingent valuation: Experimental design effects on self-reported perceptions

Authors: Börger Tobias, Abate Tenaw G., Aanesen Margrethe, Zawojska Ewa
Although the contingent valuation literature emphasises the importance of controlling for respondents' consequentiality perceptions, this literature has rarely accounted for the difference between payment and policy consequentiality. We examine t…

WP312. Payment and policy consequentiality in dichotomous choice contingent valuation: Experimental design effects on self-reported perceptions

Although the contingent valuation literature emphasises the importance of controlling for respondents' consequentiality perceptions, this literature has rarely accounted for the difference between payment and policy consequentiality. We examine the influence of the randomly assigned tax amount on consequentiality self-reports and their potential endogeneity using data from a single dichotomous choice survey about reducing marine plastic pollution in Norway. Results show that consequentiality perceptions are a function of the tax amount, with payment consequentiality decreasing and policy consequentiality increasing with higher tax amounts. We discuss the challenge of finding valid instruments to address potential endogeneity of consequentiality perceptions.


Börger Tobias, Abate Tenaw G., Aanesen Margrethe, Zawojska Ewa
Contingent valuation single dichotomous choice payment consequentiality policy consequentiality endogeneity marine plastic pollution

WP(21/2018)280. Hybrid choice models vs. endogeneity of indicator variables: a Monte Carlo investigation

Authors: Budziński Wiktor, Czajkowski Mikołaj
We investigate the problem of endogeneity in the context of hybrid choice (integrated choice and latent variable) models. We first provide a thorough analysis of potential causes of endogeneity and propose a working taxonomy. We demonstrate that alth…

WP280. Hybrid choice models vs. endogeneity of indicator variables: a Monte Carlo investigation

We investigate the problem of endogeneity in the context of hybrid choice (integrated choice and latent variable) models. We first provide a thorough analysis of potential causes of endogeneity and propose a working taxonomy. We demonstrate that although it is widely believed that the hybrid choice framework is devoid of the endogeneity problem, there is no theoretical reason to expect that this is the case. We then demonstrate empirically that the problem exists in the hybrid choice framework too. By conducting a Monte Carlo experiment, we display the extent of the bias resulting from measurement and endogeneity biases. Finally, we propose two novel solutions to address the problem: by explicitly accounting for correlation between structural and discrete choice component error terms (or with random parameters in a utility function), or by introducing additional latent variables. Using simulated data, we demonstrate that these approaches work as expected, that is, they result in unbiased estimates of all model parameters.


DOI: http://doi.org.10.26405/WP/WNE/2018/280/021
Budziński Wiktor, Czajkowski Mikołaj
hybrid choice models endogeneity measurement bias attitudinal variables indicators

WP(14/2014)131. Measuring the Causal Effect of Privatization on Firm Performance

Authors: Hagemejer Jan, Tyrowicz Joanna, Svejnar Jan
Despite an apparent consensus in the literature that privatization leads to increased productivity and profitability of firms, the problem of endogeneity bias is profound and has been emphasized in a number of meta-analyses. We propose a new method t…

WP131. Measuring the Causal Effect of Privatization on Firm Performance

Despite an apparent consensus in the literature that privatization leads to increased productivity and profitability of firms, the problem of endogeneity bias is profound and has been emphasized in a number of meta-analyses. We propose a new method to address the endogeneity bias and apply it to a universe of Polish medium and large firms over 1995-2009. Unlike some previous studies we find that improvement in firm performance is a rare phenomenon, which suggests that the endogeneity bias could have been indeed large.


Hagemejer Jan, Tyrowicz Joanna, Svejnar Jan
privatization firm performance endogeneity bias
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