RDP 2015-03: The Value of Payment Instruments: Estimating Willingness to Pay and Consumer Surplus Appendix D: Log-normal Model for Willingness to Pay

Tai Lam and Crystal Ossolinski

March 2015 – ISSN 1448-5109 (Online)

Table D1: Log-normal Model – Marginal Effect on Willingness to Pay
Sample of credit card holders
Coefficient
 		 Marginal effect(a)
Basis points
Card features
Rewards rebate (basis points) 0.01** 0.2
Interest rate (per cent) −0.05 −0.9
Financial status
Revolver 0.53* 11.5
Premium status 0.45 8.8
Charge card −0.87 −13.2
Age (base = 30–39 years)
18–29 years 0.73* 19.7
40–49 years 0.08 1.5
50–64 years −0.17 −2.8
65+ years −0.30 −4.7
Household income (base = 3rd quartile)
1st quartile −0.26 −3.2
2nd quartile 0.45 8.1
4th quartile 0.54* 10.3
Education (base = year 12)
Year 11 or below −0.15 −1.7
Trade certificate 0.72** 12.8
Diploma 0.83 16.0
Bachelor degree or higher 0.36 5.4
Labour force status (base = employed)
Unemployed −0.26 −4.2
Not in labour force 0.24 4.9
Retired 0.23 4.8
Gender (base = female)
Male −0.05 −1.0
Life stage (base = couple with children)
Couple, no children 0.11 2.5
Couple, children left home −0.30* −5.5
Single, no children −0.68 −10.5
Single, children −0.50 −8.4
Single, children left home 0.88 30.4
Other −0.10 −2.1
Location (base = capital city)
Regional −0.16 −2.9
Preferences
Speed −0.28 −5.6
To avoid charges 0.00 0.0
Greater security 0.24 4.7
Draw from own funds −0.45 −8.1
Greater privacy −0.05 −0.9
Constant 2.42  
Sample size 605
Notes: ***, ** and * denote significance at the 1, 5 and 10 per cent level, respectively
(a) Calculated as the average marginal effect on the sample from a one unit change in the continuous independent variables and a change from the base category to specified case for categorical independent variables