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In this paper, we address the often contentious debate over state and local recycling policy by carefully estimating the social net benefit of curbside recycling. Benefits are estimated using household survey data from over 4,000 households across 40 western U.S. cities. We calibrate household willingness-to-pay for hypothetical bias using an innovative experimental design that contrasts stated and revealed preferences. Cost estimates are compiled from previous studies by the U.S. Environmental Protection Agency and the Institute for Local Self Reliance, and from in-depth interviews with recycling coordinators in our sampled cities. Across our sample of cities, we find that the estimated mean social net benefit of curbside recycling is almost exactly zero. On a city-by-city basis, however, our social net-benefit analysis often makes clear predictions about whether a curbside recycling program is an efficient use of resources. Surprisingly, several existing curbside recycling programs in our sample are inefficient.

Two recent studies have shown that “cheap talk” is an effective means of eliminating positive hypothetical bias in experimental and field-auction settings. We further investigate the ability of cheap talk to mitigate positive hypothetical bias in a contingent-valuation phone survey administered to over 4,000 households. Positive hypothetical bias is detected in our data by contrasting revealed and stated preference information. However, a short, neutral cheap-talk script appears to exacerbate rather than mitigate the bias. Based on this and mixed evidence from earlier studies, we suggest caution in using cheap talk as an ex ante control for hypothetical bias.

In a recent study, Whitehead (2002) proposes incentive-incompatibility and starting-point-bias tests for iterative willingness-to-pay questions. We show that if restrictions associated with the nature of starting-point bias are not imposed on the estimation, one obtains inconsistent estimates of the structural parameters and may draw inaccurate conclusions regarding the extent of incentive incompatibility and starting-point bias in contingent-valuation survey data.

This paper looks at the willingness to pay for and participate in a curbside recycling program based on a survey of 401 residents in Ogden, Utah. Modifying the Cameron and James (1987) econometric model to fit ordered-interval data, we estimate that the mean willingness to pay for curbside recycling is $2.05 per month, and that 72% of the residents would willingly participate in such a program. Furthermore, females, young people, college-educated, those currently recycling without monetary reward, those regarding recycling as beneficial to the community and nation, and those with relatively high incomes are willing to pay the most for curbside recycling.

This paper looks at the willingness to pay for and participate in a curbside recycling program based on a survey of 401 residents in Ogden, Utah. Modifying the Cameron and James ("Efficient Estimation Methods for 'Close-Ended' Contingent Valuation Surveys," The Review a/Economics and Statistics 69(1987):269-76) econometric model to fit ordered-interval data, we estimate that the mean willingness to pay for curbside recycling is $2.05 per month, and that 72% of the residents would willingly participate in such a program. Furthermore, females, young people, college-educated, those currently recycling without monetary reward, those regarding recycling as beneficial to the community and nation, and those with relatively high incomes are willing to pay the most for curbside recycling. Based on projected costs and estimates of mean willingness to pay, mandatory curbside recycling appears to be a fiscally feasible method for reducing waste disposal.

We empirically examine interest rates established on the national market for insured thrift deposits during a period spanning passage of the Financial Institutions Reform, Recovery and Enhancement Act of 1989. Our analysis indicates that changes in the demand for funds by thrifts in periods of financial stress exerted a pronounced influence on the deposit rate premiums paid by thrifts over comparable Treasuries. This contrasts with the conventional wisdom that default risk is the primary systematic determinant of rate premiums.

This paper addresses several issues associated with distribution and interpolation of time series, including model selection and various data transformations. Monte Carlo experiments are performed, which suggest that failure to account for these data transformations may lead to serious errors in estimation.