Sunday, April 15, 2007

New article

Coming up in the American Journal of Agricultural Economics. Abstract:

This article uses latent segmentation analysis to estimate the benefits of contaminant cleanup in Waukegan Harbor, Illinois. Survey responses to attitudinal and perception questions provide significant information about the existence of distinct preference groups. By comparison, the predictive usefulness of demographic covariates is unclear. The expected aggregate willingness-to-pay of Waukegan homeowners for full cleanup is approximately equivalent to a 20% increase in the market value of homes. The aggregate estimate is little affected by the identification of preference clusters.


Anonymous said...

Sorry my teacher,your abstract is still unclear for me (may be caused I do not understand this journal exactly). But, I remember about your teaching in the class that economists tend to believe revealed pereference rather than stated preference in the case of environmental valuation. You said that to trust "what they do" not "what they say". But now, you show me that you use SP in your research. Do you believe their preferences? One more question, how about "Lumpur Lapindo" case? Why do not I see the role of economists in applying environmental economics in this case? Where are they?

Aco said...

Yes, we love RP more than SP. But in case you do not have any access to RP, use SP.

On Lapindo, I have it mentioned in my paper in BIES December issue.

Ujang said...

Aco, first tier journal! Congratulations! This is a very important milestone, hopefully one of many!