Economics Commons^™

An Examination Of Consumer Willingness To Pay For Local Products, Aaron Adalja, James Hanson, Charles Towe, Elina Tselepidakis

Aaron Adalja

We use data from hypothetical and nonhypothetical choice-based conjoint analysis to estimate willingness to pay for local food products. The survey was administered to three groups: consumers from a buying club with experience with local and grass-fed production markets, a random sample of Maryland residents, and shoppers at a nonspecialty Maryland supermarket. We find that random-sample and supermarket shoppers are willing to pay a premium for local products but view local and grass-fed production as substitutes. Conversely, buying-club members are less willing to pay for local production than the other groups but do not confllate local and grass-fed production.

Law Of One Price And Optimal Consumption-Leisure Choice Under Price Dispersion, Sergey V. Malakhov

Sergey Malakhov

Maximum Score Estimates Of The Determinants Of Residential Mobility: Implications For The Value Of Residential Attachment And Neighborhood Amenities, Timothy J. Bartik, J. S. Butler, Jin-Tan Liu

Timothy J. Bartik

This paper examines the determinants of the decision of low-income renters to move out of their current dwelling. Maximum score estimation is shown to be superior to ordinary discrete choice estimation techniques (probit, logit) for this problem, and for similar discrete choices that require revering a previously optimal decision. The estimation reveals psychological costs from moving for typical low income renters of at least 8% of their income ; these costs are even higher for older, longer tenure, or minority households. Policies that displace low income renters will have large social costs. In addition, the estimation results are used to …

Measuring The Benefits Of Amenity Improvements In Hedonic Price Models, Timothy Bartik

Timothy J. Bartik

No abstract provided.

Risk Based Urban Watershed Management Under Conflicting Objectives, Vladimir Novotny, David E. Clark, Robert Griffin, Douglas Booth

Robert Griffin

Ecological impairment and flooding caused by urbanization can be expressed numerically by calculating the risks throughout the watershed (floodplain) and along the main stems of the streams. The risks can be evaluated in terms of the present and/or future. This article describes the methodologies for ascertaining the risks in the Geographical Information Systems (GIS) environment. The objectives of urban flood controls and ecological preservation/restoration of urban waters are often conflicting and, in the past, the sole emphasis on flood control led to destruction of habitat and deterioration of water quality. An optimal solution to these two problems may be achieved …

Measuring The Value Of Plastic And Reusable Grocery Bags, Jarod Dunn, Arthur J. Caplan, Ryan Bosworth

Arthur J. Caplan

Using data from an online survey of grocery store customers in Logan, Utah, we estimate the marginal effects on willingness to pay (WTP) for continued use of plastic grocery bags, and the marginal effects on willingness to accept (WTA) for switching to reusable grocery bags. We find both non-parametric and parametric evidence suggesting that individuals respond quite dramatically to moderate plastic-bag tax rates and reusable-bag subsidy rates. All else equal, older and lower-to-middle income individuals, as well as larger-sized households, are more likely to switch to using reusable bags exclusively when faced with a tax on plastic bags. Lower-to-middle income …

On Consumers’ Valuation Of Nutritional Labels On Food Away From Home Products, Andreas Drichoutis, Panagiotis Lazaridis, Rodolfo M. Nayga, Jr.

Andreas Drichoutis

We examine consumers’ valuation for Food Away From Home (FAFH) products with and without nutritional labels using experimental auctions. We presented subjects with three different nutritional information schemes: a EU type label, a US type label and a Traffic Light (TL) label. Our results indicate that subjects bid more for the products with nutritional labels. However, among products with nutritional information, subjects’ willingness to pay values differ depending on the type of nutritional label.

Consumer Demand For Quality: Major Determinant For Agricultural And Food Trade In The Future?, Julie Caswell

Julie Caswell

The impact of consumer demand for quality on the agricultural and food system is an increased emphasis on quality differentiation but not all in the direction of upgrading quality. The more elite market segments are thriving and reaching growing numbers of consumers but the basic price/quality markets remain strong. Most recent economic studies find that consumers are willing to pay for food safety and other quality attributes, and for information about them. The magnitude of the valuations varies by food product, attribute, country, and study design. This literature and a case study of genetically modified foods suggest that consumer demand …

Measuring The Benefits Of Amenity Improvements In Hedonic Price Models, Timothy Bartik

Timothy J. Bartik

No abstract provided.

Consumer Demand For Quality: Major Determinant For Agricultural And Food Trade In The Future?, Julie Caswell

Julie Caswell

The impact of consumer demand for quality on the agricultural and food system is an increased emphasis on quality differentiation but not all in the direction of upgrading quality. The more elite market segments are thriving and reaching growing numbers of consumers but the basic price/quality markets remain strong. Most recent economic studies find that consumers are willing to pay for food safety and other quality attributes, and for information about them. The magnitude of the valuations varies by food product, attribute, country, and study design. This literature and a case study of genetically modified foods suggest that consumer demand …

Maximum Score Estimates Of The Determinants Of Residential Mobility: Implications For The Value Of Residential Attachment And Neighborhood Amenities, Timothy Bartik, J. Butler, Jin-Tan Liu

Timothy J. Bartik

No abstract provided.