USE OF CHAMBERLAIN FIXED EFFECTS APPROACH TO ESTIMATE WILLINGNESS-TO-PAY FOR LITTLE TENNESSEE RIVER BASIN MANAGEMENT ALTERNATIVES

The paper discusses an application of Chamberlain's fixed effects model to contingent valuation method survey data obtained for eight management alternatives for the Little Tennessee River basin. The advantages of using this approach versus cross-sectional logit, pooled logit, and cross-sectional logit with lags are discussed and a technique to obtain willingness-to-pay estimates from estimated coefficients is offered. Drawbacks of using Chamberlain's fixed effects model, difficulties encountered, and directions for further research are presented.