Valuing drinking water quality improvement using a Bayesian analysis of the multinomial probit model

Chung Ki Lee, Seung Jun Kwak

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This article estimates a multinomial probit model structured according to the defensive expenditures for drinking water (DW) choice, using a Bayesian analysis with Gibbs sampling. We also approximate the nonmarginal benefit from discrete improvement in DW quality by calculating the willingness to pay for safe DW. The result shows that the average household of the Seoul Metropolitan Area in Korea is willing to pay 6048 Korean won (GBP 2.91) per month to obtain improved DW similar to boiled water in quality.

Original languageEnglish
Pages (from-to)255-259
Number of pages5
JournalApplied Economics Letters
Volume14
Issue number4
DOIs
Publication statusPublished - 2007 Mar 1

ASJC Scopus subject areas

  • Economics and Econometrics

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