|
on Discrete Choice Models |
| By: | Brown, Zachary S.; Dickinson, Katherine L.; Paskewitz, Susan |
| Abstract: | Serial nonparticipation in nonmarket valuation using choice data is a pattern of behavior in which an individual always appears to choose the status quo or ‘no program’ alternative. From a choice modelling perspective serial nonparticipation may be viewed as belonging to a class of ‘discontinuous preferences,’ which also includes other behavioral patterns, such as serial participation (never choosing the status quo), as well as lexicographic preferences (e.g. always choosing the alternative with the greatest health benefit). Discontinuous preferences are likely to be especially relevant in the context of environmental goods, due to the lack of familiarity that individuals have with valuing these goods in markets. In the case of discrete choice data, logit-based choice models are ill-equipped for identifying such preferences, because conditional logit choice probabilities cannot take a value of zero or one for any finite parameter estimates. Here we extend latent class choice models to account for discontinuous preferences. Our methodological innovation is to specify for each latent class a subset of alternatives that are avoided with certainty. This results in class membership being partially observable, since we then know with certainty that an individual does not belong to a class if she selects any alternatives avoided by that class. We apply our model to data from a discrete choice experiment on mosquito control programs to reduce West Nile virus risk and nuisance disamenities in Madison, Wisconsin. We find that our ‘generalized latent class model’ (GLCM) outperforms standard latent class models in terms of information criteria metrics, and provides significantly different estimates for willingness-to-pay. We also argue that GLCMs are useful for identifying some alternatives for which valuation estimates may not be identified in a given dataset, thus reducing the risk of invalid inference from discrete choice data. |
| Keywords: | discrete choice econometrics, latent class models, partial observability, serial nonparticipation, serial participation, discontinuous preferences, E-M algorithm, Environmental Economics and Policy, Institutional and Behavioral Economics, Public Economics, Research Methods/ Statistical Methods, Q51, C35, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205613&r=dcm |
| By: | Byrd, Elizabeth; Widmar, Nicole O.; Lee, John; Gramig, Benjamin; Fulton, Joan; Wilcox, Michael |
| Abstract: | An online survey of 872 outdoor enthusiasts (self-reporting as regularly hunting, fishing, or participating in other outdoor activities) included choice experiment, maximum difference, validation and stated attribute non-attendance questions. Hunters had a statistically lower preference share devoted to animal welfare for meat purchasing and lower willingness to pay for some attributes of pork chops and chicken breasts. Accounting for stated or inferred attribute non-attendance did not change willingness to pay estimates for either product. Respondents who passed a simple validation question had statistically higher mean willingness to pay for some attributes of pork chops and chicken breasts. |
| Keywords: | willingness to pay, choice experiment, maximum difference, Demand and Price Analysis, Marketing, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205598&r=dcm |
| By: | Perry, Edward; Moschini, GianCarlo; Hennessy, David A. |
| Keywords: | Complementarity, Conservation Tillage, Discrete Choice, Production Economics, Productivity Analysis, |
| Date: | 2015–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205751&r=dcm |
| By: | Cooper, Bethany; Burton, Michael; Crase, Lin |
| Abstract: | In many Australian cities the response to drought has included the imposition of mandatory constraints over how water is used by households, often termed ‘water restrictions’. A similar rationing approach has been witnessed in California’s recent drought. The aim of water restrictions is to slow the depletion of water storage but restrictions have also been criticised for the costs they impose on specific water users. In order to gain insight into the potential magnitude of the cost of water restrictions, this study uses a choice experiment to investigate the non-market values for specific attributes associated with the outcomes of drought restrictions. This information was sought to understand the community’s willingness to pay for attributes relating to the extent, frequency and duration of water restrictions. The paper reports a latent class choice model for a major city in eastern Australia and investigates heterogeneity in preferences towards increasing water availability during drought. This study departs from the existing literature by conducting the choice experiment in a context where water supply is relatively abundant. This unique framing of the choice experiment allows for a useful comparison with existing studies and also raises challenges about the interpretation of the data for planning purposes. |
| Keywords: | urban water, choice experiments, consumer behaviour, latent class model, Environmental Economics and Policy, Q25, Q51, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205130&r=dcm |
| By: | Barrowclough, Michael; Boys, Kathryn A.; Carpio, Carlos |
| Abstract: | Marketing methods play a vital role in the efficiency of any supply-chain relationship. The relationship between buyers and sellers in the agricultural sector is dynamic and complex. While livestock and grain markets in the U.S. are generally well studied, the price setting process, buyer-seller relationships, and factors which influence the type, duration, and timing of business relationships in the market for specialty crops (SC) are less well understood. This is particularly true in the case of buyer relationships with small-scale farms. A better understanding of the dynamic relationship between small-scale SC producers and buyers is essential in achieving efficient marketing outcomes. This issue is examined from the perspective of small-scale SC growers in Virginia (VA) and North Carolina (NC). Using a Choice Experiment (CE) approach, this study: (1) identifies key contract characteristics and buyer attributes which are valued by VA and NC small-scale SC producers; (2) quantifies tradeoffs VA and NC small-scale SC producers are willing to make between buyer attributes and contract characteristics when establishing a new contractual relationship; and (3) determines the factors influencing these tradeoffs. Mean willingness-to-pay (WTP) of contract attributes and individual-specific WTP estimates are recovered using a mixed-logit model. Using these individual-specific estimates, a random-effects model is then used to determine factors driving producer WTP. While expressing concerns about specific aspects of contracts, growers overall were found receptive to the idea of using contracts as a viable marketing channel alternative. Substantial heterogeneity is found to exist amongst growers in their attitudes towards the structural framework of produce contracts, suggesting that growers have competing marketing interests with varying preferences towards contract structure. All four non-price contract attributes are found to have significant WTP estimates at a 95% confidence interval or higher. A combination of producer demographics, farm operation characteristics, contract perceptions, and attribute processing strategies are shown to impact the overall WTP for the selected contract attributes. Additionally, growers’ preferences are found to be stable throughout the study. |
| Keywords: | Specialty Crops Marketing, Small-Scale Farm, Choice Experiment, Mixed Logit Model, Random Effects Model, Agribusiness, Agricultural and Food Policy, Farm Management, Q13, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205768&r=dcm |
| By: | Canavari, Maurizio; Wongprawmas, Rungsaran; Pappalardo, Gioacchino; Pecorino, Biagio |
| Abstract: | A non-hypothetical open-ended choice experiment (OECE) with multi-unit value elicitation formats was conducted to elicit Italian consumer willingness-to-pay (WTP) and demand for wheat-derived products (flour, pasta and bread) that were produced by adopting ecological friendly post-harvest technique (High Heat-Treated, HHT). A sample of 270 Italian consumers were surveyed in Bologna, Catania and Palermo in June 2014. Data were analyzed using double hurdle models. Consumers’ WTP and demand schedule for HHT products were estimated. Results suggest Italian consumers are willing to pay premium prices for HHT flour and HHT pasta, while they are available to pay about the same price or less for HHT packed bread compared to conventional packed bread. Price, location, perception of green consumption and frequency of consumption significantly affect both consumers’ participation and consumption decisions. We conclude by discussing the implications of our findings for industry operators and marketers. |
| Keywords: | Open-ended choice experiment, demand schedule, willingness-to-pay, eco-friendly product, Agribusiness, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205204&r=dcm |
| By: | Bello, Muhammad Baba; Abdulai, Awudu |
| Abstract: | In this paper, we employ a framework that allows us to jointly model the response to the stated choice component as well as the response to the attribute processing questions for organic product attributes among consumers in Nigeria. The model allows us to make use of respondent reported information on processing strategies and conditions attribute parameters on underlying latent attribute importance ratings, while avoiding the potential endogeneity bias and measurement error problems arising with traditional methods. Using between-sample design, we compare the welfare estimates from respondents under cheap talk and honesty priming treatments. Our results suggest that the HP task leads to lower WTP values by a factor of two relative to cheap talk task, for three of the four attributes identified. Our findings also reveal some modest impacts on implied WTP patterns, with a more realistic difference between the valuations for the attributes, and lower overall heterogeneity relative to the commonly used mixed multinomial logit model. |
| Keywords: | organic products, cheap talk, honesty priming, attribute non-attendance, hybrid model, Consumer/Household Economics, Environmental Economics and Policy, International Development, C18, C25, D12, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205085&r=dcm |
| By: | Jones, Michael S.; House, Lisa A.; Gao, Zhifeng |
| Abstract: | While a successful survey requires engaged and attentive respondents, careless survey completion remains a great concern in online market research. In this article, we test metrics of engagement in an online willingness-to-pay (WTP) study for fresh blueberry attributes using a major U.S. panel company and evaluate the impact that poorly behaving respondents have on subsequent data quality. In doing so, we investigate in detail the complex joint relationship between attribute non-attendance (ANA) and measures of respondent engagement in web surveying. Using fixed latent classes, an approach known as the Equality Constrained Latent Class procedure, we export individual probabilistic class assignment of all levels of attribute attendance to cross reference with respondents who fail measures of engagement and fraudulence, and analyze their composition and impact on latent classes, indicating non-attendance of individual and combinations of attributes. We also analyze engagement impacts on the tau variance parameter in the scaled mixed logit model and find strong links to unnecessarily increased heterogeneity when not properly filtering poorly behaving respondents. While WTP estimates between respondents passing and failing engagement metrics are similar with the ECLC model, filtering failing respondents in the scaled mixed logit model reduces overall WTP estimates. Results have implications for both WTP researchers and general online market researchers. |
| Keywords: | Agribusiness, |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi15:206252&r=dcm |
| By: | Yuan, Yuan; You, Wen; Boyle, Kevin J. |
| Abstract: | The literature in discrete choice modelling is increasingly recognizing the existence of attribute non-attendance, in which respondents ignore some attributes when answering an attribute-based question. This behaviour may present a serious problem for modelling and inference, because it violates fundamental assumptions of the random utility model on which choice models are based. In this study, we elicit attribute non-attendance using a six-point polytomous attendance scale, rather than restricting them to a dichotomous ignored/considered response, as in previous studies. Stated non-attendance has been found to be unreliable in previous studies, but polytomous attendance scales have the potential to address the sources of unreliability. Using data from a choice experiment in health economics, this study assesses the performance and consistency between empirical observations and theoretical expectations of a polytomous attendance scale. We find that the lowest point on the attendance scale is the part of the scale which corresponds best to attribute non-attendance, and that attendance scales longer than two or three points do not provide much additional information. Furthermore, the polytomous attendance scale had limited success in producing theoretically consistent results, suggesting that potential for polytomous attendance scales to produce more reliable attendance statements was not realized in this study. |
| Keywords: | choice experiment, choice model, attribute non-attendance, polytomous attendance scale, Health Economics and Policy, Research Methods/ Statistical Methods, |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205688&r=dcm |
| By: | Norton, D.; Hynes, S. |
| Abstract: | This paper uses the choice experiment methodology to estimate the value of the nonmarket benefits associated with the achievement of good (marine) environmental status (GES) as specified in the EU Marine Strategy Framework Directive (MSFD). The MSFD requires that the “costs of degradation” (the benefits foregone if GES is not achieved) be considered within a broader ‘Economic and Social Assessment’ of the marine environment by EU member states. Assessing the costs of degradation as defined by the MSFD implies that changes in marine ecosystem services provided in each State should be analysed. The results show that there are high values attached with changes to the state of the marine environment by the Irish general public. The results of a random parameters logit model also demonstrate that preferences are heterogeneous, with changes in certain marine attributes generating both positive and negative utility. |
| Keywords: | Marine Strategy Framework Directive, Marine Environment, Non-market Valuation, Choice Experiment, Ecosystem Services, Environmental Economics and Policy, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:semrui:186382&r=dcm |
| By: | VLAEMINCK, Pieter; VRANKEN, Liesbet |
| Abstract: | Labeling schemes are used as a mechanism to inform consumers about products with both public and private characteristics. Consumers are increasingly interested in the ethical characteristics of food products and are willing to pay the premium for it. Nevertheless, market shares of ethically produced food products remain low. Not much research has been directed towards the question whether labels completely incorporate the ethical characteristics they stand for and are able to convey these values to consumers. Using two, partially incentive compatible, stated choice experiments in a natural consumer environment and chocolate as study object, we are able to compare consumers’ willingness to pay for a Fair Trade label and for the label’s underlying characteristics. Results show that dispersion exists between the value of a Fair Trade label and the actual values consumers attach to the underlying characteristics of Fair Trade. |
| Keywords: | Fair Trade, Chocolate, Willingness to pay, Label effectiveness, Attitude behavior, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, International Development, C9, D12, Q50, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:kucawp:206438&r=dcm |
| By: | Ortega, David L.; Waldman, Kurt B.; Richardson, Robert B.; Clay, Daniel C.; Snapp, Sieglinde |
| Abstract: | Adoption of legumes in Africa remains low despite the much needed soil fertility and nutrition benefits provided by the crops. We employ choice experiments to examine farmers’ preferences for groundnut, soybean and pigeon pea intercropped with maize and explore barriers and drivers to adoption in Central and Southern Malawi. Overall, farmers significantly discount legume yields in favor of maize yields despite the additional benefits provided by legumes. Labor constraints and market access are potentially more important barriers to legume adoption than previously thought. Results identified three types of farmers, the largest group (48%) associated with strongly positive preference for gains in grain yield and negative for labor requirements and distant markets, a medium- sized group (35%) with no legume yield preference, and the smallest group (17%) indifferent to yield and market factors. The medium group may be growing legumes for other benefits such as enhanced maize productivity, and the smallest group may be primarily subsistence producers. These findings suggest that uptake of legume maize intercrop systems might be improved if practitioners focus on legumes that have lower labor requirements and better marketability. Conducting participatory research with farmers to demonstrate the context specific tradeoff in yields between various legumes and maize in intercrop could help increase adoption. |
| Keywords: | Legumes, maize, choice experiment, farmer preferences, latent class model, mixed logit, Food Security and Poverty, Institutional and Behavioral Economics, International Development, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205705&r=dcm |
| By: | Lim, Kar Ho; Grebitus, Carola; Hu, Wuyang; Nayga, Rodolfo M. Jr. |
| Abstract: | The Marine Stewardship Council (MSC) certificate provides great promise as a market-based tool for sustainable fisheries but to succeed in the market a critical share of producers needs to participate in the program. Since consumers’ willingness to pay is a driver of producer participation, we conduct a consumer choice experiment to determine U.S. American consumers’ preferences and willingness to pay for MSC certification for canned tuna. We find that most U.S. American consumers are willing to pay for MSC-certified seafood. Also, results show that MSC certification might be especially advantageous for exporting producers from developing countries. Finally, our modeling allows us to determine complementary effects that MSC might have with other attributes. The results provide insights to stakeholders in the seafood industry on the effectiveness of MSC certification in championing sustainable fisheries. Recommendations based on willingness to pay for sustainable seafood labeled with MSC are provided. |
| Keywords: | Marine Stewardship Council, Sustainability, Willingness to Pay, Seafood, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Environmental Economics and Policy, Marketing, Q11, Q13, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205634&r=dcm |
| By: | Alhassan, Mustapha; Perrin, Richard; Fulginiti, Lilyan |
| Abstract: | This paper used the contingent valuation (CV) approach to estimate the willingness of potential producers in selected counties in 12 states in the Midwest region of U.S. to supply switchgrass, and also to lease out land for switchgrass production. We used the dichotomous choice (DC) format and a linear random utility probit model is employed to estimate the willingness to accept (WTA) in both cases in terms of revenue per acre per year. From the preliminary results of the willingness to produce, the estimated mean WTA for region 1(selected counties in Minnesota, North Dakota, South Dakota, Wisconsin, and Michigan) is $314.62 per acre, that of region 2 (selected counties in South Dakota, Nebraska, Kansas, Missouri, Indiana, and Ohio) is $462.10 per acre, and that of region 3 (selected counties in Illinois, Iowa, Minnesota, and Wisconsin) is $451.75 per acre. From the willingness to lease out land for switchgrass production results, the estimated mean WTA for region 1 is $257.45 per acre, $384.39 per acre for region 2, and $354.74 per acre for region 3. |
| Keywords: | Willingness to accept, contingent valuation, switchgrass, bioenergy crop., Production Economics, Resource /Energy Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205281&r=dcm |
| By: | Loomis, John; Sanchez, Jose; Gonzalez-Caban, Armando; Holmes, Thomas |
| Abstract: | With increasingly large expenditures of public funds being spent to reduce the severity of wildfires around homes, officials and legislators are often interested in knowing the economic benefits these funds provide. However, agencies often do not have funding or expertise to conduct individual state specific benefit estimates, and often rely upon benefit transfer (BT) estimates. We calculate the BT error for transferring California homeowner benefit estimates to Florida and vice-versa for public and private fire risk reduction programs. We use the same choice experiment survey and the same specification of the mixed logit model in both states. In terms of accuracy of benefit transfer, among homeowners that perceive low to moderate fire risk, transferring willingness to pay (WTP) from CA to FL or FL to CA for the Public Program to reduce wildfire risk yields a large BT error (-33.1% to 51.8%). However, these large BT errors for the Public Program become smaller (-23.3% to +30.4%) when the benefit transfer focuses on those homeowners with high risk perceptions of wildfire in their neighborhood. In contrast, the opposite pattern is found for the Private Program. There are low BT errors when transferring WTP for the Private Program to reduce risk (-4.4% to 4.8%) between CA and FL homeowners that perceive low to moderate fire risk. But for high risk perceiving homeowners WTP for the Private Program to reduce wildfire risk immediately around their home has a much larger BT error (-16.4% to 31.8%). While our range of BT errors are generally less than found in the BT convergent validity literature, our BT errors are still higher than expected given the same methodology is used in both states, and the homeowners in the two states report similar effects of wildfires and perceived risk. It is hypothesized that the considerable differences between homeowner demographics in the two states may be contributing to the BT errors. |
| Keywords: | benefit transfer, California, Choice Experiment, convergent validity, forest fires, Florida, mixed logit models, risk perception, wildfires, Environmental Economics and Policy, Q23, Q51, |
| Date: | 2015–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:202661&r=dcm |
| By: | Bazzani, Claudia; Caputo, Vincenzina; Nayga, Rodolfo M.; Canavari, Maurizio |
| Abstract: | Choice experiments (CE) are one of the most popular preference elicitation mechanisms used by applied economists. In CEs, respondents are normally asked to make choices at the moment they are asked to do so. They are also based on the assumption that the decision maker has access to and makes use of all relevant information concerning the good of interest when making their choices. However, real world choices are usually made in a dynamic context where individuals have the option to delay or reserve a transaction due to, among others, uncertainty about the product. So committing a decision at the present under conditions of uncertainty for the value of the good might have a cost (i.e., commitment cost). In this paper, we test commitment cost theory in a non-hypothetical choice experiment. Specifically, we test the possibility that gaining information about the product either at the present or in the future and the possibility of reversing the transaction in the future can influence choice behavior and WTP estimates. Our results partially support the Commitment Cost theory, suggesting that the construction of a dynamic decision context (i.e., reversibility of transaction) is important in choice experimental designs. |
| Keywords: | Commitment Cost, Dynamic settings, Uncertainty, Real Choice Experiment, WTP, Agricultural and Food Policy, Institutional and Behavioral Economics, Marketing, |
| Date: | 2015–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205235&r=dcm |
| By: | Livy, Mitchell R.; Gopalakrishnan, Sathya; Klaiber, H. Allen; Roe, Brian |
| Abstract: | We utilize a newly developed stated preference survey to determine preferences for shale drilling and its associated externalities. Examining both willingness to pay (WTP) and willingness to accept (WTA) measures, this research presents evidence of the implications of recent shale gas drilling expansion in northeastern Ohio, and provides guidance for future work on the impacts of shale gas drilling activities on nearby residents. |
| Keywords: | Survey, Shale Drilling, Willingness to Pay, Willingness to Accept, Conjoint Analysis, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205390&r=dcm |
| By: | He, Chenyi; Gao, Zhifeng |
| Keywords: | Agribusiness, Marketing, |
| Date: | 2015–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205807&r=dcm |
| By: | Acquah, Sarah; Petrolia, Daniel |
| Abstract: | Using a choice experiment this study found that raw oyster consumers are more likely to buy oysters harvested from their region over those harvested outside the region. Consumers are more likely to buy wild-caught oysters over cultivated oysters. Non-Gulf consumers are more likely to buy medium or large size oysters over small size. |
| Keywords: | branding, choice experiment, marketing, oyster attributes, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea14:162449&r=dcm |
| By: | Holland, Jacqueline K.; Olynk Widmar, Nicole J.; Widmar, David A.; Ortega, David L.; Gunderson, Michael A. |
| Abstract: | Farm management is a series of complex processes incorporating a variety of dynamic factors, including biological aspects, resource allocation and management, and the management of increasingly complex financial/economic systems, which managers are constantly asked to prioritize and allocate management effort amongst. This work determines which success factors, from five predetermined factors (managing production; managing land, equipment, and facilities; controlling costs; managing output prices; and managing people) commercial producers identified as most important for the success of their operation. A total of 28.6 % of respondents selected controlling costs and 27.3% selected managing production as most important factors. From producer-specific estimates of a mixed logit model, correlations between the success factors were estimated; the strongest correlation observed was the negative relationship between managing production and controlling costs. Implications for self-identified success factors of commercial agricultural producers are far reaching, potentially influencing sales, marketing, and decision support for these operations, as well as driving research and programmatic focus to provide relevant information to these producers moving forward. |
| Keywords: | Farm Management, Success, Best Worst, Modeling, Correlations, Choice Experiment, Farm Management, Q12, C25, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea14:162422&r=dcm |
| By: | Hu, Chaoran; Chen, Kevin Z.; Reardon, Thomas |
| Abstract: | Nonfarm activities (NFA) are a crucial component of the livelihood strategies of China’s rural households. Empirical evidence shows that 51% of rural households’ income in Asia is from nonfarm earnings (Haggblade, Hazell and Reardon 2007). However, the increasingly uneven spatial distribution of these nonfarm economies has raised the concerns in many countries. It is found that rural towns or intermediate cities play the more important roles in rural poverty reduction than big cities (Berdegué et al. 2015), yet, we still see more migrants concentrating in urban big cities in China. To explore this paradoxical situation will provide some evidences for other developing countries experiencing rapid yet unbalanced urbanization. In this paper, we used a unique data set to find out what are the factors driving rural migrant’s destination choice and whether they are always attracted by large cities. Apart from this main research question, several other contributions are made to the literature. First, this paper performs pioneer research by conducting the estimation of the determinants of Chinese rural off-farm worker’s locational choice, including and comparing both local and migratory NFA, both of which are important among rural households in China, yet the former is generally ignored in the literature. Second, the Nested-Logit Model is used to relax the irrelevant alternatives assumption, proved to be inappropriate if directly adopted traditional Logit or Multinomial Logit model in our case. The results suggested the importance of transportation as well as education to attract rural migrants. We did not see rural migrants preferring larger cities while facing with decreasing travel distances. For rural nonfarm economy, it is also important to improve agricultural performance in rural areas to generate multiplier effects as well as providing education/trainings to rural off-farm workers to be involved in higher-skilled NFA. |
| Keywords: | Rural Nonfarm, Migration, Destination choice, Nested Logit Model, China, Agricultural and Food Policy, Community/Rural/Urban Development, International Development, Labor and Human Capital, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205535&r=dcm |
| By: | Lim, Kar Ho; Grebitus, Carola; Hu, Wuyang; Nayga, Rodolfo M. Jr. |
| Abstract: | While a number of hypothetical bias mitigation methods have been proposed, the problem remains as the literature continues to debate the effectiveness and practicality of the mitigation methods (Loomis, 2011). We propose an easy to implement methods to mitigate hypothetical bias in choice experiments. The method involve asking respondents to recall the Ten Commandments prior to willingness to pay elicitation. Our result shows that the proposed method exhibit sign of hypothetical bias mitigation. |
| Keywords: | Hypothetical bias, Ten Commandments, Honesty, Agribusiness, Agricultural and Food Policy, Institutional and Behavioral Economics, Marketing, C18, C90, D12, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205648&r=dcm |
| By: | Evans, Nicole T.; Chan, Catherine; Yanagida, John; Miura, Tomoaki |
| Abstract: | The local palm oil market of Togo has been facing competitive imports. Examining consumer preferences for domestic versus imported palm oil will aid local farmers with a more marketable product. A conjoint choice experiment (CCE) was designed to discover consumer preferences. Three-hundred surveys were conducted over two weeks in Sokodé, Togo in June 2014. Latent class analysis results showed three distinctive classes of consumers. Class 1 (69%) consumers purchase palm oil once a week and have formal education. They prefer lower price and local palm oil for cooking sold at boutiques. Class 2 (28%) prefer local oil and Class 3 (3%) prefer imported oil. A site suitability analysis with ArcGIS revealed the best growing areas for the trees. The results will be presented to rural farmers in Togo in order to assist in the production of the best product for consumers, increasing local production and supporting the local economy. |
| Keywords: | Palm Oil, Togo, Consumer Preference, Conjoint Choice, Willingness-to-Pay, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development, Land Economics/Use, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205378&r=dcm |
| By: | Fu, Shengfei; Shonkwiler, John Scott |
| Abstract: | This study proposes a new estimator for multivariate binary response data. This study considers binary responses as being generated from a truncated multivariate discrete distribution. Specifically the discrete normal probability mass function, which has support on all integers, is extended to a multivariate form. Truncating this point probability mass function below zero and above one results the multivariate binary discrete normal distribution. This distribution has a number of attractive properties. Monte Carlo simulation and empirical applications are performed to show the properties of this new estimator; comparisons are made to the traditional multivariate probit model. |
| Keywords: | Multivariate binary response, discrete normal distribution, Multivariate Probit, Agricultural and Food Policy, Consumer/Household Economics, Environmental Economics and Policy, Institutional and Behavioral Economics, Marketing, Research Methods/ Statistical Methods, B23, Q13, D1, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:204963&r=dcm |
| By: | Yan, Yiwei; Ames, Glenn C.W.; Colson, Gregory; Chen, Tinggui |
| Abstract: | This study analyzes Shanghai customers’ willingness to pay for safer Baby Cheese following a series of food safety incidents by a major Chinese manufacturer. Results from interval regressions of consumer survey responses indicate that consumers are willing to pay a premium of 36.80% for safer Baby Cheese. |
| Keywords: | Food Safety, Willingness to Pay, Interval Regression, Cheese, Agribusiness, Food Consumption/Nutrition/Food Safety, D12, Q13, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea14:162497&r=dcm |
| By: | Li, Xiaogu; Jensen, Kimberly L.; Clark, Christopher D.; Lambert, Dayton M. |
| Abstract: | Consumers in the United States spend a large portion of their household food expenditure on beef, as some of them are willing to pay premium for beef products presented with high quality attributes, both taste and non-taste related. This study examines U.S. beef consumer preferences and willingness to pay for non-taste, "extrinsic" attributes that exhibit public benefits, and how they are affected by individual taste and scale heterogeneity. Effects of consumers' beliefs in the consequential effects of their beef choices are also investigated. Results may further understanding of U.S. consumers' perception and acceptance of extrinsic attributes in beef products and public issues such as food safety, climate change and animal welfare. |
| Keywords: | beef, extrinsic attributes, public goods, scale heterogeneity, consequentiality, Agricultural and Food Policy, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Q13, Q18, Q56, |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:204908&r=dcm |
| By: | He, Chenyi; Gao, Zhifeng |
| Keywords: | Agribusiness, Marketing, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205819&r=dcm |
| By: | Chen, Xuqi; Gao, Zhifeng; Swisher, Marilyn; House, Lisa A. |
| Abstract: | Concerns about environmental degeneration due to excessive use of chemical fertilizers and pesticides have grown as farmers have increased reliance on these chemicals to maintain or increase crop yields. Although there are a variety of governmental programs that encourage farmers to adopt practices using less fertilizers and pesticides, many growers continue using conventional production methods in part because the economic benefits of using more environmentally sensitive techniques remains unproven or elusive for farmers. Exploring consumer willingness to pay (WTP) for fresh produce carrying labels describing various environmental benefits is one important aspect in assessing the potential that growers will adopt environmentally sound production techniques. Given that sustainable production practices may have different environmental benefits, differentiating consumer WTP for specific benefits may provide critical information for developing more effective labels and help growers more appropriately label products produced with environmental friendly techniques. |
| Keywords: | Willingness to pay, Eco-label, Fresh produce, Environmentally friendly, Agribusiness, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205655&r=dcm |
| By: | Gallenstein, Richard; Mishra, Khushbu; Sam, Abdoul; Miranda, Mario |
| Abstract: | Index insurance has been heralded as a potential solution to systemic risks faced by smallholder farmers in developing countries by covering risks such as drought, low crop yields, and low market prices. Despite its potential, demand has remained low in many early experiments and field trials. Little research has been done, however, on demand for insurance as it is coupled with other services such as loans. Here, willingness to pay for drought index insurance backed loans is investigated using contingent valuation methodology. Results demonstrate that on average the sample population has a willingness to pay high enough to sustain a market viable insured loan product without subsidization with 56% of the target population expressing a willingness to pay for an insured loan at the market price. Results also show a positive and significant WTP for individual policies and to avoid basis risk resulting from rainfall measurement. |
| Keywords: | Index Insurance, Willingness to Pay, Micro finance, Agricultural Finance, Demand and Price Analysis, International Development, Risk and Uncertainty, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205696&r=dcm |
| By: | Yang, Qingqing; Rosenman, Robert |
| Abstract: | We study how socioeconomic conditions, especially relative household income, affect self-assessed health. We use a random effects generalized ordered probit model with data from China Health and Nutrition Survey (CHNS) to test for heterogeneity in how people assess their health. The results show that individuals with high relative income are less likely to report poor health, but they are also less likely to report extremely good healthy. Although SAH capture many aspects of health elements, it might be biased on some socioeconomic features. |
| Keywords: | SAH, Reporting Heterogeneity, relative income, Health Economics and Policy, Institutional and Behavioral Economics, Research Methods/ Statistical Methods, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205217&r=dcm |