Estimating benefit of agricultural database : Approach of response error in survey
Ki Ho Jeong1
1Department of Economics, Kyungpook National University
Correspondence to: 1 Professor, Department of Economics, Kyungpook National University, Daegu 41566, Korea. E-mail: khjeong@knu.ac.kr
Received November 17, 2022; Revised December 10, 2022; Accepted December 10, 2022.
This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.
- Abstract
- This paper re-examines results of Lee et al. (2018) which estimated the benefits of Mudtoram, a public database for agriculture operated by the Rural Development Administration. Existing studies on public projects benefit estimation, including Lee et al. (2018), set up estimation models assuming that respondents clearly know their preferences and respond correctly in surveys. However, since some public projects, including the construction of agricultural databases, are not easily accessible to the general public in daily life, it is possible that survey respondents are not sure about their preferences and so answer incorrectly. This paper uses the method of Hausman et al. (1998) to reflect the possibility of response errors in the survey and apply the modified method to the case of Mudtoram. The results showed that the probabilities of response errors have statistically explanatory power and the benefit of Mudtoram is smaller than in Lee et al. (2018). This means that if CVM is applied without considering response errors, the benefits of public goods may be evaluated incorrectly.
- Keywords : Benefit estimation, misclassification logit model, stated preference method, public database for agriculture, response error.
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