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Walter Belluzzo, A Two-Sample Test for Threshold Crossing Latent Variables with Application to Valuation Studies, Journal of the Royal Statistical Society Series C: Applied Statistics, Volume 55, Issue 3, May 2006, Pages 397–406, https://doi.org/10.1111/j.1467-9876.2006.00543.x
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Summary
Contingent valuation researchers are often interested in a comparison of the underlying willingness-to-pay distributions in two independent studies. Since willingness to pay is not observable, traditional testing procedures for comparing distributions cannot be applied directly. The paper proposes a permutation test for this sort of comparison. The main distinguishing characteristic of the test proposed is that it does not rely on asymptotic approximations and facilitates the introduction of covariates. The permutation test is illustrated with the case of projects of investment for the improvement of two important Brazilian river basins.