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

Chung Ki Lee, Seung Jun Kwak

    Research output: Contribution to journalArticlepeer-review

    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

    Fingerprint

    Dive into the research topics of 'Valuing drinking water quality improvement using a Bayesian analysis of the multinomial probit model'. Together they form a unique fingerprint.

    Cite this