SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

We challenge the assumption of i.i.d random utility across alternatives embedded in typical applications of logit models to dichotomous choice contingent valuation data. Using a Gumbel mixed distribution which nests a number of traditional models, we show that the logistic distribution is not a suitable distribution for contingent valuation analysis.

Temporal Insensitivity of Willingness to Pay: How do they evaluate in CVM?

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2005

URL: http://purl.umn.edu/19138

In addition to scope and scale embedding effects, temporal insensitivity of willingness to pay, also known as temporal embedding effect, has been a well known anomaly in eliciting willingness to pay for environmental quality change, especially over time. Stevens et al. (1997) defines two types of temporal embedding effects: strong insensitivity and weak insensitivity to payment schedule. This paper proposes an alternative definition of the temporal insensitivity. Temporal insensitivity implies that a subject in the survey responds consistently to value elicitation questions regardless of payment schemes. The sequential test tests the temporal insensitivity using the oyster reef restoration programs in Chesapeake Bay. Test results show that willingness to...

Productivity Before and After Exports: The Case of Korean Food Processing Firms

Palavras-chave: Temporal insensitivity of willingness to pay; Temporal embedding effect; Implicit discount rate; Sequential test; Demand and Price Analysis.

Ano: 2007

URL: http://purl.umn.edu/9972

Gopinath, Munisamy; Kim, Hanho; Kim, Sooil.

In this article, we analyze the export decision of Korean manufacturing firms with emphasis on those in the food processing sector. A dynamic discrete choice model based on sunk (entry or exit) costs is specified for export behavior. Data for 1996-2002 on 1022 Korean firms, of which 95 are in the food processing sector, are assembled. A nonparametric measure of firm productivity is derived for use in the export-behavior (probit) model. Results show the significant effects of sunk costs on the export decision of Korean firms. A firm-size effect on export behavior is identified for food processing firms, unlike in the case of their manufacturing counterparts. We also find a firm-size effect on productivity in all manufacturing firms.

TEMPORAL INSENSITIVITY OF PVWTP AND IMPLIED DISCOUNT RATES IN CVM

Palavras-chave: Agribusiness.

Ano: 2006

URL: http://purl.umn.edu/21271

The sensitivity of WTP is tested in terms of the present value and the implied discount rates are derived by varying the length of benefit and the temporal payment schedules. Results show that holding the length of the project constant, the present value of willingness to pay does not vary significantly across payment schemes (one time payment, versus life of the project, versus perpetuity). Heteroskedasticity of error term over payment schemes fails to be accepted. Holding the payment scheme constant, the present value of WTP is insensitive to the life of the project (5 or 10 years). The implied discount rates are high as previous literatures.

The Impact of Trade Costs on Firm Entry, Exporting, and Survival in Korea

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2003

URL: http://purl.umn.edu/21921

Kim, Sooil; Reimer, Jeffrey J.; Gopinath, Munisamy.

This study uses a unique firm-level dataset to examine how falling trade costs from 1993-2001 affected entry, exit, productivity, and exporting in the Korean manufacturing sector. We verify many of the predictions of recent heterogeneous-firm models of international trade. For example, falling trade costs reduced entry by new Korean firms, increased their probability of exit, and reduced the market share of surviving firms. We also find that small firms had a particularly high level of dynamism over the sample period. Small firms were more likely to enter and exit, and marginally more likely to gain market share, enter export markets for the first time, and improve their productivity.

Bias and Efficiency of Uniform Bid Design in Contingent Valuation

Palavras-chave: Employment; Exit; Exports; Firm deaths; Survival; Trade costs; Agribusiness; Industrial Organization; International Development; International Relations/Trade; Labor and Human Capital; Marketing; Production Economics; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies; F10; D24.

Ano: 2009

URL: http://purl.umn.edu/49185

Kim, Sooil.

While contingent valuation (CV) methods have experienced growing popularity for estimating the willingness to pay for nonmarket goods and services, optimal bid designs for CV that provide guidance in bid point placement often render themselves impractical by relying on pretest or prior information about the true distribution for willingness to pay. We investigate the use of a practical alternative to existing optimal or robust bid designs called the uniform design. Uniform design randomly draws bid points from a predetermined uniform distribution. Analytics and simulations show that the uniform design has higher low-bound of relative efficiency at 84 percent of D-optimum than a robust design. Simulations also demonstrate that uniform design outperforms...

REVISITING BID DESIGN ISSUES IN CONTINGENT VALUATION

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2006

URL: http://purl.umn.edu/21335

A uniform bid design from a predetermined uniform distribution is proposed as a practical and robust alternative to existing optimal or naïve bid designs. Analytics and simulations show that the uniform design provides efficiency better than naïve designs under ideal conditions and outperforms optimal designs with poor initial information.