CV
Surveys
M. Hand, J. Thacher, D. McCollum, R. Berrens. Intra-Regional Amenities, Wages, and Home Prices: The Role of Forests in the Southwest. Land Economics Nov 2008, Vol 84, No. 4 pp 635-651
N. Flores and J. Thacher (2002). Money, who needs it? Contemporary Economic Policy 20(2):171-178.
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Publications
Abstracts and working paper versions of papers
M. Hand, J. Thacher, D. McCollum, R. Berrens. Intra-Regional Amenities, Wages, and Home Prices: The Role of Forests in the Southwest. Land Economics Nov 2008, Vol 84, No. 4 pp 635-651
Abstract: Forests provide non-market goods and services that people are implicitly willing to pay for through hedonic housing and labor markets. But it is unclear if compensating differentials arise in these markets at the regional level. This empirical question is addressed in a study of Arizona and New Mexico. Hedonic regressions of housing prices and wages using census and geographic data show that forest area carries an implicit price of between $27 and $36 per square mile annually. Compensating differentials at the regional level suggest that care must be taken when applying the travel cost method to value regionally delineated characteristics.
K. Grimsrud, J. Chermak, J. Hansen, J. Thacher, K. Krause. (2008) A Two-Agent Dynamic Model with an Invasive Weed Diffusion Externality: An Application to Yellow Starthistle (Centaurea Solitialis) in New Mexico. Jo Environmental Management. 89: 322-335
Abstract: This paper presents a bioeconomic model for two agents, a cattle rancher and a non-rancher, with interdependencies between their individual effort of invasive weed management and profitability. Dynamic simulations allow us to find numerically the optimal effort of weed control over a 5-year time horizon under a variety of beginning infestation levels. In a base-case scenario without governmental cost-share of control costs, we find that efforts to control the weed are not profitable. The base-case scenarios also indicate that grazing contributes to giving the invasive weed a competitive edge. A second series of simulations include incentive payments for weed control which are set at the minimum level required to have a net positive impact on the rancher's profitability. From these simulations, we find that the level of infestation impacts the size of the incentive necessary to get the agent to control the weeds and that the incentive payments impact the level of effort of the rancher. In addition, results reveal that the higher incentive payments for lower levels of weed infestations reduce the total cumulative incentive payments over time. Efficient policies directed towards management of invasive weeds may need to be adjusted for each individual case.
M. Hand, J. Thacher, D. McCollum, R. Berrens (2008). Forest Amenities and Location Choice in the Southwest. Journal of Agricultural and Resource Economics. August 2008, Vol. 33, No. 2. pp. 232-253.
Abstract: Locations with natural characteristics, such as forests, are thought to be attractive residential locations. This proposition is tested in the Southwest United States, composed of Arizona and New Mexico. This paper presents a conditional logit model of location choice estimated with household observations from the U.S. Census, geographic information system (GIS) data, and county-level data. Results suggest that forest area, both in one’s own location and nearby, increases the probability of choosing a location. But significant heterogeneity in location choices exists; an income effect and life-cycle effects on the demand for forest amenities appears to determine location choices.
T. Prante, J. Thacher, D. McCollum, R. Berrens (2007). Building Social Capital in Forest Communities: Analysis of New Mexico's Collaborative Forest Restoration Program. Natural Resources Journal. Vol. 47, No. 4.
Abstract: The Collaborative Forest Restoration Program (CFRP) in New Mexico represents a unique experiment in applying communitybased forestry to public lands management. In the spirit of revealedpreference analysis, logit probability modeling is used to investigate the determinants of CFRP funding decisions (over $26 million, 20012006). Results provide evidence of program preferences for projects that enhance collaboration and forest health, especially in poor counties, and that include an ontheground treatment. Negative determinants include assessed measures of smalldiameter material utilization, and whether a project takes place across multiple land jurisdictions. There is no evidence of bias towards funding any particular applicant type or land jurisdiction.
T. Prante, J. Thacher, R. Berrens (2007). Evaluating Coasean Bargaining Experiments with Meta-Analysis Economics Bulletin. 12/18/2007.
Abstract: While the Coase Theorem has been a touchstone for understanding bargaining behavior, it has also been criticized for relying on unrealistic assumptions. In response, a line of experimental research analyzes bargaining behavior in laboratory settings. This paper uses meta-analysis to evaluate the Coasean bargaining literature by modeling the probability of an efficient bargain as a function of: (1) measures of transaction costs and related variables, and (2) measures of the social dimensions of a bargain. Results suggest that efficient solutions are more likely when explicit transaction costs do not exist, in the absence of a binding time limit, and when participants have perfect information on payoff schedules. Social dimension variables are found to have the potential to affect bargaining outcomes and are an important avenue for further research.
E. Morey, J. Thacher, E. Craighead (2007). Patient Preferences for Depression Treatment Programs and Willingness To Pay for Treatment. Journal of Mental Health Policy and Economics 10(2): 73-85.
Background: Current estimates of the societal costs of depression do not include estimates of how much individuals diagnosed with Ma jor Depres- sive Disorder (MDD) would be willing to pay to eliminate their depression or how much they would have to be paid in order to accept continued depression. Choice-question data and discrete-choice random-utility models provide a use- ful method for valuing changes in mental health and mental-health treatment programs. Aims of the study: (1) To demonstrate how choice questions and discrete- choice random-utility models can be used to estimate preferences over treat- ment programs for depression and willingness-to-pay (WTP ) to eliminate de- pression. (2) To investigate whether consumption of goods provides less utility when one is depressed (an anhedonia effect) and, if so, the magnitude of the effect. (3) To model and estimate the extent of heterogeneity in preferences for treatment programs for depression. (4) To derive preliminary estimates of WTP and willingness-to-accept (WTA) for eliminating depression, both with, and without side effects.
G. Aldrich, K. Grimsrud, J. Thacher, and M. Kotchen (2007). Relating Environmental Attitudes and Contingent Values: How Robust are Methods for Identifying Preference Heterogeneity? Environmental and Resource Economics 37(4): 757-775 .
Abstract We assess the importance and robustness of cluster analysis and latent class analysis as methods to account for unobserved heterogeneity. We provide a critique and comparison of both methods in the context of measuring environmental attitudes and a contingent valuation study involving endangered species. We find strong evidence of robustness for these methods: group characterization and assignment of individuals to groups are similar between methods, and willingness-to- pay estimates are consistent. In addition, there are significant differences in will- ingness-to-pay across environmental attitudinal groups, and we find that accounting for unobservable heterogeneity provides a significantly better fitting model.
E. Morey, J. Thacher, and B. Breffle (2006). Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model, Environmental and Resource Economics 34(1): 91-115.
Abstract. A latent-class model of environmental preference groups is developed and estimated with only the answers to a set of attitudinal questions. Economists do not typically use this type of data in estimation. Group membership is latent/unobserved. The intent is to identify and characterize heterogeneity in the preferences for environmental amenities in terms of a small number of preference groups. The application is to preferences over the fishing char- acteristics of Green Bay. Anglers answered a number of attitudinal questions, including the importance of boat fees, species catch rates, and fish consumption advisories on site choice. The results suggest that Green Bay anglers separate into a small number of distinct classes with varying preferences and willingness to pay for a PCB-free Green Bay. The probability that an angler belongs to each class is estimated as function of observable characteristics of the individual. Estimation is with the expectation–maximization (E–M) algorithm, a technique new to environmental economics that can be used to do maximum-likelihood estimation with incomplete information. As explained, a latent-class model estimated with attitudinal data can be melded with a latent-class choice model.
J. Thacher, E.Morey, and E. Craighead (2005). Using Patient Characteristics and Attitudinal Data to Identify Depression Treatment Preference Groups: A Latent-Class Model, Depression and Anxiety 21(2): 47-54.
A latent-class model is used to identify and characterize groups of patients who share similar attitudes towards treating depression. The results predict the probability of preference-group membership on the basis of observable characteristics and answers to attitudinal questions. Understanding the types of preference groups that exist and a patient’s probability of membership in each of the groups can help clinicians tailor the treatment to the patient and may increase patient adherence. One hundred four depressed patients completed a survey on attitudes towards treatment of Major Depressive Disorder. Analysis shows that treatment preferences vary among depressed patients. Three classes are identif ied that dif fer in their sensitivity to treatment costs and side ef fects. One class cares primarily about treatment ef fectiveness; side effects and the cost of treatment have little impact on this class’s treatment decisions. Another class is highly sensitive to cost and side effects. A third class is somewhat sensitive to cost and side effects. Younger and male patients are more likely to be sensitive to treatment costs and side ef fects.
N. Flores and J. Thacher (2002). Money, who needs it? Contemporary Economic Policy 20(2):171-178.
A new natural resource damage assessment paradigm has been suggested that emphasizes direct analysis of compensatory restoration rather than analysis of compensating variation for damages. This article considers whether money can be avoided in damage assessment. The analysis of compensatory restoration leads to the conclusion that money should be considered when measuring preferences. Failure to consider money leaves trustees unable to judge the adequacy of compensatory restoration. The problem stems from heterogeneity over restoration scale.
