Controlling omitted variables and measurement errors by means of constrained autoregression and structural equation modeling: Theory, simulations and application tomeasuring household preference forin-house piped water in Indonesia

Yusep Suparman

Controlling omitted variables and measurement errors by means of constrained autoregression and structural equation modeling: Theory, simulations and application tomeasuring household preference forin-house piped water in Indonesia

Yusep Suparman

Onderzoeksoutput: Thesis fully internal (DIV)

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Samenvatting

Het doel van dit proefschrift is de voorkeur voor inpandig leidingwater in landelijk en stedelijk Indonesië nader te analyseren. Ten behoeve hiervan ik allereerst het gerestricteerde autoregressieve (CAR) - structurele vegelijkingen modellering (SEM) – (ASEM) geïntroduceerd om te controleren voor tijdvariërende weggelaten variabelen en meetfouten in een hedonistisch prijsmodel. Op de tweede plaats heb ik door middel van Monte-Carlo simulatie CAR vergeleken met de gebruikelijke benaderingen bij het controleren voor weggelaten variabelen. Op de derde plaats, eveneens door middel van Monte-Carlo simulatie, heb ik de gevoeligheid van de CAR specificatie getoetst voor de bias als gevolg van weggelaten variabelen. Op de vierde plaats heb ik ASEM toegepast om de voorkeur voor inpandig leidingwater in landelijk en stedelijk Indonesië te analyseren.
Met betrekking tot het eerste doel heb ik gevonden dat ASEM weggelaten variabelen en meetfouten adequaat controleert Met betrekking tot de tweede doelstelling heb ik gevonden dat CAR beter presteert dan de alternatieve correctie-procedures voor weggelaten variabelen in termen van bias en gemiddelde kwadratische fout. Met betrekking tot het derde doel heb ik gevonden dat gevolglijk is CAR een acceptabel middel om te controleren voor weggelaten variabelen. Met betrekking de vierde doelstelling vond ik dat een gemiddeld stedelijk en landelijk huishouden dezelfde bereidheid om te betalen hadden voor inpandig leidingwater, namelijk 34.24% van de maandelijkse huishuur. Deze resultaten ondersteunen de behoefte aan voortgezette investering in inpandige waterleiding in zowel landelijke als stedelijke gebieden, in het bijzonder ten gunste van huishoudens met de laagste uitgavenniveaus.

Originele taal-2	English
Kwalificatie	Doctor of Philosophy
Toekennende instantie	Rijksuniversiteit Groningen
Begeleider(s)/adviseur	van Dijk, Jouke, Supervisor Folmer, Henk, Supervisor
Datum van toekenning	24-sep.-2015
Plaats van publicatie	[Groningen]
Uitgever	University of Groningen
Gedrukte ISBN's	978-90-367-7995-1
Elektronische ISBN's	978-90-367-7994-4
Status	Published - 2015

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Title_and_contents_Final publisher's version, 181 KB
List_of_Table_Final publisher's version, 152 KB
AcknowledgementFinal publisher's version, 108 KB
AbstractFinal publisher's version, 139 KB
Chapter_1Final publisher's version, 240 KB
Chapter_2Final publisher's version, 306 KB
Chapter_3Final publisher's version, 298 KB
Chapter_4Final publisher's version, 219 KB
Chapter_5Final publisher's version, 375 KB
Chapter_6Final publisher's version, 162 KB
SamenvattingFinal publisher's version, 168 KB
About_AuthorFinal publisher's version, 106 KB
Complete_dissertationFinal publisher's version, 859 KB
PropositionsFinal publisher's version, 110 KB

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title = "Controlling omitted variables and measurement errors by means of constrained autoregression and structural equation modeling: Theory, simulations and application tomeasuring household preference forin-house piped water in Indonesia",

abstract = "I aimed this thesis at shedding further light on the preferences for in-house piped water in rural and urban Indonesia. Particularly first, I introduced constrained autoregression (CAR) Structural Equation Modeling (SEM) – ASEM for controlling time-varying omitted variables and measurement errors in a hedonic price model used in revealing household preferences for in-house piped water connection. Second, by a Monte-Carlo simulation, I compared CAR to the commonly used approaches for controlling omitted variables. Third, also by a Monte-Carlo simulation, I tested sensitivity of CAR specification in response to the presence of omitted variable bias. Fourth, I applied ASEM to analyze the preference for in-house piped water in rural and urban Indonesia.From the first objective I found that ASEM performs well in controlling both omitted variables and measurement errors and both should be controlled simultaneously as done by ASEM. From the second objective I found that CAR constrained autoregression outperforms the alternative omitted variables correction procedures in terms of bias and mean square errors. From the third objective, I found that CAR is an acceptable vehicle to control for time-varying omitted variables. From the fourth objective, I found that on average urban and rural households have the same willingness to pay for in-house piped water i.e. 34.24% of their monthly house rent. The findings support a need for further investment in in-house piped water in both areas, particularly for the households with the lowest expenditure levels.",

author = "Yusep Suparman",

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T2 - Theory, simulations and application tomeasuring household preference forin-house piped water in Indonesia

AU - Suparman, Yusep

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N2 - I aimed this thesis at shedding further light on the preferences for in-house piped water in rural and urban Indonesia. Particularly first, I introduced constrained autoregression (CAR) Structural Equation Modeling (SEM) – ASEM for controlling time-varying omitted variables and measurement errors in a hedonic price model used in revealing household preferences for in-house piped water connection. Second, by a Monte-Carlo simulation, I compared CAR to the commonly used approaches for controlling omitted variables. Third, also by a Monte-Carlo simulation, I tested sensitivity of CAR specification in response to the presence of omitted variable bias. Fourth, I applied ASEM to analyze the preference for in-house piped water in rural and urban Indonesia.From the first objective I found that ASEM performs well in controlling both omitted variables and measurement errors and both should be controlled simultaneously as done by ASEM. From the second objective I found that CAR constrained autoregression outperforms the alternative omitted variables correction procedures in terms of bias and mean square errors. From the third objective, I found that CAR is an acceptable vehicle to control for time-varying omitted variables. From the fourth objective, I found that on average urban and rural households have the same willingness to pay for in-house piped water i.e. 34.24% of their monthly house rent. The findings support a need for further investment in in-house piped water in both areas, particularly for the households with the lowest expenditure levels.

AB - I aimed this thesis at shedding further light on the preferences for in-house piped water in rural and urban Indonesia. Particularly first, I introduced constrained autoregression (CAR) Structural Equation Modeling (SEM) – ASEM for controlling time-varying omitted variables and measurement errors in a hedonic price model used in revealing household preferences for in-house piped water connection. Second, by a Monte-Carlo simulation, I compared CAR to the commonly used approaches for controlling omitted variables. Third, also by a Monte-Carlo simulation, I tested sensitivity of CAR specification in response to the presence of omitted variable bias. Fourth, I applied ASEM to analyze the preference for in-house piped water in rural and urban Indonesia.From the first objective I found that ASEM performs well in controlling both omitted variables and measurement errors and both should be controlled simultaneously as done by ASEM. From the second objective I found that CAR constrained autoregression outperforms the alternative omitted variables correction procedures in terms of bias and mean square errors. From the third objective, I found that CAR is an acceptable vehicle to control for time-varying omitted variables. From the fourth objective, I found that on average urban and rural households have the same willingness to pay for in-house piped water i.e. 34.24% of their monthly house rent. The findings support a need for further investment in in-house piped water in both areas, particularly for the households with the lowest expenditure levels.

M3 - Thesis fully internal (DIV)

SN - 978-90-367-7995-1

PB - University of Groningen

CY - [Groningen]

ER -