• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Presentation daniel
 

Presentation daniel

on

  • 422 views

 

Statistics

Views

Total Views
422
Views on SlideShare
422
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Discuss qualitative approaches: problems due to:- Social desirability in answers.- Cognitive dissonance.- Impossible to forecast counterfactual- Non-random small samples – with no known statistical properties.Need to comply with Government thinking and methods.

Presentation daniel Presentation daniel Presentation Transcript

  • Evidencing Value in Economics(and the role of behavioural sciences and statistics)Daniel FujiwaraLondon School of Economicsd.f.fujiwara@lse.ac.uk
  • Economics• ‘Value’ has a clear definition in economics• Welfare is central – it is the ultimate intrinsicgood = Welfarism.• Basis of cost-benefit analysis, cost-effectiveness analysis etcWelfare
  • Value theory• Value of a good = the amount of money thatinduces the equivalent change in welfare for theindividual. (Indifference point)• Compensating Surplus andEquivalent Surplus• Related to WTP and WTA
  • So what is ‘welfare’? (part 1)• Economists traditionally measure this as thesatisfaction of one’s (rational) preferences.• Neuroscience – increasing evidence that somenotion of welfare underlies (and predicts) ourdecisions.• Use Revealed Preference or StatedPreference valuation methods.
  • Stated preferences and cultural value• Queensland Government (2009). WTP of A$20 pato support Queensland Museum.• Thompson et al. (2002). WTP of US$100+ for anincrease in government-funded artsperformances in Kentucky.• But, Behavioural science shows that preferencescan often be misinformed and inconsistent (don’talign with welfare)
  • So what is ‘welfare’? (part 2)• Driven by behavioral economics, economiststurning to self-report measures.• Subjective wellbeing can consist in lifesatisfaction (evaluative), happiness (hedonic),worthwhile (eudemonic).
  • Wellbeing valuation and cultural value• Fujiwara (2013); Fujiwara et al. (2013):- Value of cinema visit = £12- Value of participating in arts = £1,500 pa (dance, arts, music,photography)- Value of being audience to cultural events= £2,000 paPolicy intervention(culturalengagement)MoneyWellbeing
  • Causality is key• We’ve measured value, but how do we knowwe have created it?Econometrics Statistics
  • Maryland Evidence Scale (example)• Public policy institutions moving towards rankingsystems (implicitly or explicitly) for internal validity.• Must also remember external validity.