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Attribute processing in environmental choice analysis: implications for willingness to pay AgEcon
Campbell, Danny; Lorimer, Victoria; Aravena, Claudia; Hutchinson, W. George.
Data from a discrete choice experiment is used to investigate the implications of failing to account for attribute processing strategies (APSs). The research was designed to elicit the economic benefits associated with landscape restoration activities that were intended to remediate environmental damage caused by illegal dumping activities. In this paper we accommodate APSs using an equality constrained latent class model. By retrieving the conditional class membership probabilities we recover estimates of the weights that each respondent assigned to each attribute, which we subsequently use ensure unnecessary weight is not allocated to attributes not attended to by respondents. Results from the analysis provide strong evidence that significant gains in...
Tipo: Conference Paper or Presentation Palavras-chave: Attribute processing strategies; Environmental restoration; Equality constrained latent class model; Multinomial logit model; Willingness to pay; Environmental Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/91718
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Benefit Evaluation of the Country of Origin Labeling in Taiwan: Results from Auction Experiment AgEcon
Chern, Wen S.; Chang, Chun-Yu.
This research is aimed at investigating the consumer’s preference for food produced in Taiwan and the economic benefits for the country of origin labeling. The study uses both experimental auction and contingent valuation method (CVM) to investigate factors that affect the consumer’s willingness to pay (WTP) for products under country-of-origin labeling (COOL). Experimental auctions of Taiwan and China preserved olives as well as Taiwan, China and Vietnam oolong teas were conducted using the Vickrey’s second price sealed bid auction. For CVM, the study used the double-bounded dichotomous choice method in which we started assuming the same base price for all products in the first question and then varied the prices in the second CV question. The products...
Tipo: Conference Paper or Presentation Palavras-chave: Country-of-origin labeling; Experimental auction; Tobit model; Contingent valuation method; Logit model; Multinomial logit model; Willingness to pay; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Q13; D12..
Ano: 2009 URL: http://purl.umn.edu/49215
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CONSERVATION TILLAGE AND PESTICIDE USE IN THE CORNBELT AgEcon
Fuglie, Keith O..
Adoption of conservation tillage can lead to substantial environmental benefits from reduced soil erosion. But benefits may be partially offset if adoption increases reliance on agricultural chemicals. Using area study data from the Cornbelt, this study examines factors affecting adoption of no-till and other conservation tillage systems and their effect on chemical use and corn yield. The results find no evidence that herbicide or fertilizer application rates are higher on fields with conservation tillage systems compared with conventional tillage. However, insecticide use may increase somewhat and yield may be lower. Current demographic trends in U.S. agriculture favor continued diffusion of conservation tillage.
Tipo: Journal Article Palavras-chave: Conservation tillage; Multinomial logit model; Pesticides; Technology adoption; Crop Production/Industries.
Ano: 1999 URL: http://purl.umn.edu/15138
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Crop Revenue and Yield Insurance Demand: A Subjective Probability Approach AgEcon
Shaik, Saleem; Coble, Keith H.; Knight, Thomas O.; Baquet, Alan E.; Patrick, George F..
A multinomial logit is utilized to model the choice of whether to purchase yield or revenue insurance using subjectively elicited survey data. Our results indicate that the demand for crop insurance is inelastic (-0.40), consistent with most earlier yield elasticity estimates, but the elasticity for choices between yield and revenue insurance is found to be relatively more elastic (-0.88).
Tipo: Journal Article Palavras-chave: Crop insurance; Elasticities; Multinomial logit model; Revenue demand; Subjective elicitation; Survey; Agribusiness; Crop Production/Industries; Demand and Price Analysis; Q18.
Ano: 2008 URL: http://purl.umn.edu/47256
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Discrete choice models, which one performs better? AgEcon
Gallardo, Rosa Karina; Chang, Jae Bong.
For over the last thirty years the multinomial logit model has been the standard in choice modeling. Development in econometrics and computational algorithms has led to the increasing tendency to opt for more flexible models able to depict more realistically choice behavior. This study compares three discrete choice models, the standard multinomial logit, the error components logit, and the random parameters logit. Data were obtained from two choice experiments conducted to investigate consumers’ preferences for fresh pears receiving several postharvest treatments. Model comparisons consisted of in-sample and holdout sample evaluations. Results show that product characteristics hence, datasets, influence model performance. We also found that the...
Tipo: Conference Paper or Presentation Palavras-chave: Multinomial logit model; Error components; Random parameters; Discrete choice; Research Methods/ Statistical Methods; C25; D12.
Ano: 2010 URL: http://purl.umn.edu/61483
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Estimation of multinomial logit models with unobserved heterogeneity using maximum simulated likelihood AgEcon
Haan, Peter; Uhlendorff, Arne.
In this paper, we suggest a Stata routine for multinomial logit models with unobserved heterogeneity using maximum simulated likelihood based on Halton sequences. The purpose of this paper is twofold. First, we describe the technical implementation of the estimation routine and discuss its properties. Further, we compare our estimation routine with the Stata program gllamm, which solves integration by using Gauss–Hermite quadrature or adaptive quadrature. For the analysis, we draw on multilevel data about schooling. Our empirical findings show that the estimation techniques lead to approximately the same estimation results. The advantage of simulation over Gauss–Hermite quadrature is a marked reduction in computational time for integrals with higher...
Tipo: Journal Article Palavras-chave: Multinomial logit model; Multinomial logistic model; Panel data; Unobserved heterogeneity; Maximum simulated likelihood; Halton sequences; Research Methods/ Statistical Methods.
Ano: 2006 URL: http://purl.umn.edu/117572
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Factors that influence the use of contract farming by southern Chilean farmers Ciencia e Investigación Agraria
Morales,Liliana; Echeverría,Rodrigo; Barrera,María del V.
Unlike in the central zone of Chile, the use of contract farming (CF) is uncommon in the southern regions of the country, and few studies have attempted to explain this situation. The objective of this study was to analyze the factors that influence the use of CF in southern Chile. The methodology consisted of two approaches: a quantitative approach, wherein a multinomial logit model was applied to data obtained from questionnaires completed by 384 southern producers, and a qualitative approach that included in-depth individual interviews with professionals, officials of public institutions, and producer focus groups. The main results show that producers with high educational levels, large farms, and production oriented toward the export market who are...
Tipo: Journal article Palavras-chave: Contract farming; Multinomial logit model; Focus groups; Interviews.
Ano: 2013 URL: http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-16202013000100004
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Is Contract Farming Really Pro-poor? Empirical Evidence from Northern Vietnam AgEcon
Tiongco, Marites M.; Lapar, Ma. Lucila A.; Costales, Achilles; Son, Nguyen Tuan; Jabbar, Mohammad A.; Staal, Steven J..
Maintaining smallholder competitiveness in the changing market for pigs and pig meat remains an important development challenge, particularly in the context of pro-poor public policymaking. With the ongoing rapid changes in market organizations to respond to changing consumer demand and market requirements, there are viable institutional options and market organizations for smallholders to remain active participants in the pig industry where they are substantially contributing in terms of total output. Results from this study suggest that there is limited scope for smallholder pig producers to participate in formal contracts; however, smallholders were found to participate in informal contracts with cooperatives and with input/output traders that...
Tipo: Conference Paper or Presentation Palavras-chave: Northern Vietnam; Multinomial logit model; Contractual arrangements; Pig production and marketing; Agricultural and Food Policy; Institutional and Behavioral Economics; Livestock Production/Industries.
Ano: 2009 URL: http://purl.umn.edu/51161
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Product Differentiation and Market Segmentation in Applesauce: Using a Choice Experiment to Assess the Value of Organic, Local, and Nutrition Attributes AgEcon
James, Jennifer S.; Rickard, Bradley J.; Rossman, William J..
Recently, there has been much interest among horticultural producers concerning the marketing of organic and locally produced food. A consumer survey was administered that asked respondents to choose an applesauce product from a list of products differentiated by price, and by labels that described fat content, nutrition content, and whether the product was grown organically and/or locally. Our analysis indicates that consumers were willing to pay more for locally grown applesauce compared to applesauce that was labeled USDA Organic, Low Fat, or No Sugar Added. Furthermore, we find evidence that increased knowledge of agriculture decreases the willingness to pay for organic and locally grown applesauce.
Tipo: Journal Article Palavras-chave: Applesauce; Choice experiment; Consumer demand; Fruit and vegetable markets; Local food; Multinomial logit model; Organic; Pennsylvania; Willingness to pay; Marketing.
Ano: 2009 URL: http://purl.umn.edu/59248
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Product Differentiation and Market Segmentation in Applesauce: Using a Choice Experiment to Assess the Value of Organic, Local and Nutrition Attributes AgEcon
James, Jennifer S.; Rickard, Bradley J.; Rossman, William J..
Recently there is much interest among horticultural producers concerning the marketing of organically- and locally- produced food. Here we developed a consumer survey that asked respondents to choose an applesauce product from a list of products differentiated by price and four attributes. The products were differentiated by labels that described fat content, nutrition content, and whether the product was grown organically and/or locally. The survey was distributed to 3,000 residents in rural Pennsylvania and over 1,500 responses were collected yielding a response rate of 56%. Survey results were used to assess consumers’ willingness to pay for the product attributes in applesauce, and we found that consumers were willing to pay more for locally-grown...
Tipo: Working or Discussion Paper Palavras-chave: Applesauce; Choice experiment; Consumer demand; Fruit and vegetable markets; Locally grown; Multinomial logit model; Organic; Pennsylvania; Willingness to pay; Agribusiness; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Q13.
Ano: 2009 URL: http://purl.umn.edu/48916
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Short-term poverty dynamics of rural households: Evidence from Central Sulawesi, Indonesia JARTS
van Edig, Xenia; Agricultural Economics and Rural Development, Georg-August-University Goettingen; now at Copernicus GmbH, Bahnhofsallee 1e, 37081 Goettingen Tel.: +49-551-900339-18, fax: +49-551-900339-70; Schwarze, Stefan; International Food Economics and Rural Development, Department of Agricultural Economics and Rural Development, Georg-August-University Goettingen Platz der Goettinger Sieben 5, 37075 Goettingen. Tel: +49-551-393901, fax: +49-551-394624.
The understanding of poverty dynamics is crucial for the design of appropriate poverty reduction strategies. Taking the case of Central Sulawesi, we investigate the determinants of both chronic and transitory poverty using data from 264 randomly selected households interviewed in 2005 and 2007. Regarding the US 1$/day poverty line, the headcount index declined from 19.3% in 2005 to 18.2% in 2007. However, we observed an increasing number of people living on less than US 2$/day expressed in purchasing power parity (PPP). The results of the estimated multinomial logit model applied in this study indicate that a lack of non-agricultural employment opportunities and low endowment of social capital are major determinants of chronic as well as transitory poverty...
Tipo: Info:eu-repo/semantics/article Palavras-chave: Agricultultural economics Poverty dynamics; Spells approach; Multinomial logit model; Indonesia.
Ano: 2012 URL: http://www.jarts.info/index.php/jarts/article/view/2012011740376
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The History of Sinks - An Analysis of Negotiating Positions in the Climate Regime AgEcon
Jung, Martina.
The issue of terrestrial carbon sinks, officially labelled as Land use, Land-use change and Forestry (LULUCF) has been one of the most contentious and difficult issues in the international climate change negotiations. This study analyses the negotiation process on sinks from the third Conference of the Parties (COP 3) to COP 7 by using a multinomial logit model to identify factors influencing the negotiating positions on LULUCF of 166 Parties to the United Nations Framework Convention on Climate Change (UNFCCC). The results show that the importance of the forestry sector of a country does not seem to have affected the negotiation positions on LULUCF. However, the results suggest that the LULUCF issue was used by those Parties with a rather negative...
Tipo: Working or Discussion Paper Palavras-chave: Kyoto Protocol; Sinks; LULUCF; Negotiating positions; Multinomial logit model; Zeroinflated count model; Environmental Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/26339
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The proximity of a field plot and land-use choice: implications for land consolidation AgEcon
Grammatikopoulou, Ioanna; Myyra, Sami; Pouta, Eija.
Traditional methods in agricultural economics and agricultural engineering have yielded mixed results when specifying the costs of an unfavourable parcel structure. Concepts related to travel costs and the production function are frequently applied when the costs of farming distant parcels are examined. However, farmers’ perspective regarding preferences for land use is ignored or partly overlapped by predictions made by researchers. Based on applied econometric models fitted to stated preference data, we revealed that the proximity of a field plot is a relevant factor affecting land-use decisions. One-fourth of landowners would change the use of a field plot if the condition of distance was changed. Landowners would continue farming a field plot if its...
Tipo: Conference Paper or Presentation Palavras-chave: Land use options; Distance factor; Land consolidation; Choice experiment; Multinomial logit model; Random parameters model.; Land Economics/Use.
Ano: 2011 URL: http://purl.umn.edu/114602
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Valuing Animal Welfare with Choice Experiments: An Application to Swedish Pig Production AgEcon
Liljenstolpe, Carolina.
In this paper, the demand for animal welfare attributes when buying pork fillet is investigated among Swedish respondents. More specifically, the coefficients of an indirect utility function and willingness to pay for animal welfare attributes are estimated. The utility function is estimated using a multinomial logit and a random parameter logit model. A realistic scenario when modeling consumer choices is to allow for heterogeneity in preferences. The random parameter logit model departs from the well known IIA property and allows for a more flexible taste distribution across individuals. The need for assuming randomness of some parameters are evaluated by using a specification testing procedure with artificial variables developed by McFadden and Train...
Tipo: Conference Paper or Presentation Palavras-chave: Pig production; Consumer valuation; Animal welfare; Multinomial logit model; Random parameter logit model; Livestock Production/Industries.
Ano: 2005 URL: http://purl.umn.edu/24503
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Valuing Attributes of Fluid Milk Using Choice-Based Conjoint Experimental Design AgEcon
Bai, Junfei; Wahl, Thomas I.; Wandschneider, Philip R..
A choice-based conjoint (CBC) experiment was employed to analyze Chinese consumers’ preferences for fluid milk defined by four choice attributes: production processing method, fat content level, taste, and price. The results from two analysis approaches (counting and multinomial logit models) indicated that Chinese consumers are willing to pay a premium for pasteurized, low fat content, and natural tasting milk, but that they require a discount for choosing ultra high temperature (UHT), high fat content, and flavored milk. In addition, this study estimated the trade-offs among attributes’ levels and simulated the effects of income on the probabilities of choosing attribute-specified milk.
Tipo: Conference Paper or Presentation Palavras-chave: China; Choice-based conjoint; Consumer economics; Milk attributes; Multinomial logit model; Demand and Price Analysis.
Ano: 2007 URL: http://purl.umn.edu/9821
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Willingness to Pay for Genetically Modified Oil, Cornflakes, and Salmon: Evidence from a U.S. Telephone Survey AgEcon
Kaneko, Naoya; Chern, Wen S..
This paper reports results from a U.S. national telephone survey on genetically modified foods (vegetable oil, cornflakes, and salmon). The survey featured a contingent valuation in which respondents chose between the GM and non-GM alternatives with an option of indifference. The binomial and multinomial logit models yielded estimated willingness to pay (WTP) to avoid the GM alternatives. Respondents were willing to pay 20.9%, 14.8%, 28.4%, and 29.7% of the base prices to avoid GM vegetable oil, GM cornflakes, GM-fed salmon, and GM salmon, respectively. The inclusion of indifference option could increase the sample size and moderate the mean WTP.
Tipo: Journal Article Palavras-chave: Contingent valuation; GMO; Multinomial logit model; Telephone survey; Willingness to pay; Q0; D1.
Ano: 2005 URL: http://purl.umn.edu/43504
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