Calcite | Level 5

## Calculating Standard error for willingness to pay

Hi everyone!

I am doing a research on willingness to pay for food safety attributes for vegetables and because of that I want to calculate standard error for willingness to pay using bootstrapping method in SAS. Does anyone knows how can I calculate standard error for willingness to pay?

thank you!

5 REPLIES 5
Super User

## Re: Calculating Standard error for willingness to pay

Calling @Rick_SAS

SAS Super FREQ

## Re: Calculating Standard error for willingness to pay

You need to say more about how you compute "willingness to pay" (WTP). The general idea is that you estimate WTP on the original data, then generate thousands of random subsamples of the data and estimate WTP on each subsample. The result is the "bootstrap distribution" of WTP estimates (one for each subsample). The standard deviation of that distribution is the standard error you are looking for.

An overview of bootstrapping in SAS is given in the article "The essential guide to bootstrapping in SAS",

which provides links to dozens of tips and techniques for efficient bootstrapping in SAS.

Calcite | Level 5

## Re: Calculating Standard error for willingness to pay

Hi dear sir!

Firstly, I estimated the a conditional logit model using proc MDC in SAS then I computed the willingness to pay using this formula WTP=B(attributes)/-Bprice. Now I want to know how I can calculate the standard error or confidence level for estimated willingness to pay using bootstrapping method in SAS.

SAS Super FREQ

## Re: Calculating Standard error for willingness to pay

If you still have questions after reading The Essential Guide to Bootstrapping in SAS, then please post your code and some sample data.

Calcite | Level 5

## Re: Calculating Standard error for willingness to pay

Hi dear sir!

As you said before I attached a sample of my data with this message and the codes which I have used to run the conditional logit are as following:

proc MDC data=work.leafy;*/basic model/*;

title 'Basic Model';

model answer= none appearance_wholesome ps_organic tm_super mygap_cert price /type= clogit nchoice=3;

id questions;

output out=probdata pred=p;

run;

After I estimated the coefficients for each variable I calculated Willingness to pay using this formula WTP=B(variable)/-Bprice

Now I want to know how I can calculate the standard error for WTP using bootstrapping method.

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