Randall A. Kramer

Analysis of Food Stamp Participation Using Qualitative Choice Models

Food stamp program participation at the household level was analyzed using a nationwide sample of households as well as refined measures of residential location, source of income, and household age distribution. Additionally, an empirical comparison of probit analysis vis-a-vis logit analysis was provided. The criteria for the comparison consisted of the use of estimated parameter values, signs, magnitudes, and test statistics, goodness-of-fit to sample data, predictive ability to independent data samples, and non-nested testing procedures. On the basis of this application, the two alternatives appeared to perform equally well.

Divers’ willingness to pay to visit marine sanctuaries: an exploratory study ☆

Abstract Entrance fees paid by divers to enter marine sanctuaries constitute a significant potential revenue source to finance coral reef conservation. An exploratory contingent valuation study was carried out among foreign and local tourists in three major dive destinations in the Philippines to examine diver demand for visits to protected coral reef areas. Results indicate that most divers would be willing to pay an entrance fee to marine sanctuaries where fishing, one of the major threats to coral reefs, is prohibited. An econometric model was estimated analyzing the socioeconomic and travel related factors that affect divers’ willingness to pay. Results indicate that substantial amounts of revenues may be collected through entrance fees to support coral reef conservation. Most tourists interviewed preferred NGOs as the most trustworthy organization type to collect and manage entrance fees.

Participation in Farm Commodity Programs: A Stochastic Dominance Analysis

The net benefits of participation in farm commodity programs are analyzed with a normative risk model based on stochastic dominance theory. Utilizing entire probability distributions of participation and nonparticipation net returns, the impacts of alternative program features and farm size are investigated. Small changes in program parameters are found to affect participation decisions. It also is demonstrated that farm size can influence participation choices.

Worth of watersheds: a producer surplus approach for valuing drought mitigation in Eastern Indonesia

This study combines hydrological modeling with applied micro-econometric techniques to value a complex ecosystem service: drought mitigation provided by tropical forested watersheds to agrarian communities. Spatial variation in current baseflow allows estimation of drought mitigation values as the marginal profit accruing to agricultural households. The paper shows that this uncommon focus on producer (not consumer) surplus measures is appropriate for valuation as long as markets for commodities related to the environmental services are complete. For the typical household, the estimated marginal profit is positive, validating the central hypothesis that baseflow makes positive contributions to agricultural profits. There is some evidence, however, that increased watershed protection will increase profits through greater baseflow only in watersheds with a unique mix of physio-graphic and climatic features. The paper evaluates and provides some support for the hypothesis, put forward by hydrological science and the Indonesian Government, that protected watersheds can supply latent and unrecognized ecosystem services to local people.

Does Question Format Matter? Valuing an Endangered Species

A three-way treatment design is used to compare contingent valuation response formats. Respondents are asked to value an endangered species (the red-cockaded woodpecker) and the restoration of its habitat following a natural disaster. For three question formats (open-ended, payment card, and double-bounded dichotomous choice), differences in survey response rates, item non-response rates, and protest bids are examined. Bootstrap techniques are used to compare means across formats and to explore differences in willingness to pay (WTP) distribution functions. Convergent validity is found in a comparison of mean WTP values, although some differences are apparent in the cumulative distribution functions. Differences across formats are also identified in item non-response rates and proportion of protest bids. Overall, the payment card format exhibits desirable properties relative to the other two formats.

Pricing ecological services: Willingness to pay for drought mitigation from watershed protection in eastern Indonesia

In this study we estimate local economic values of ecological services provided by protected forest watersheds in Ruteng Park in eastern Indonesia. Our use of contingent valuation (CV) methodology for pricing drought mitigation benefits to local farmers extends previous work by deriving measures of willingness to pay in terms of incremental agricultural profits. On the basis of the theoretical and content validity of estimated models we find that CV can be used to value complex ecological services in a rural developing country setting. The estimated parameters provide policy and management information regarding the economic magnitude and spatial distribution of the value of drought mitigation.

Soil Conservation with Uncertain Revenues and Input Supplies

The influence of risk on farm level soil conservation decisions is examined. A symmetric quadratic risk-programming model is used which allows the simultaneous consideration of uncertainty in revenues and input supplies. It is demonstrated that risk aversion can influence the selection of soil-conserving activities.

Reduction of Malaria Prevalence by Indoor Residual Spraying: A Meta-Regression Analysis

Indoor residual spraying (IRS) has become an increasingly popular method of insecticide use for malaria control, and many recent studies have reported on its effectiveness in reducing malaria burden in a single community or region. There is a need for systematic review and integration of the published literature on IRS and the contextual determining factors of its success in controlling malaria. This study reports the findings of a meta-regression analysis based on 13 published studies, which were chosen from more than 400 articles through a systematic search and selection process. The summary relative risk for reducing malaria prevalence was 0.38 (95% confidence interval = 0.31-0.46), which indicated a risk reduction of 62%. However, an excessive degree of heterogeneity was found between the studies. The meta-regression analysis indicates that IRS is more effective with high initial prevalence, multiple rounds of spraying, use of DDT, and in regions with a combination of Plasmodium falciparum and P. vivax malaria.

Migration and Fishing in Indonesian Coastal Villages

Abstract The coastal ecosystems in Southeast Asia are under increased pressure from local and global change. This paper examines human migration and the use of marine resources in coastal villages in the Minahasa district of North Sulawesi, Indonesia. Primary data were collected through interviews with village leaders, focus groups, and a sample survey of 600 fishing households. Migration is responsible for at least one quarter of the total growth during the past decade. All groups of fishermen report falling productivity of the nearshore fisheries. Econometric analysis is used to examine the weekly fish catch of the artisanal fishing sector. Migration status and socioeconomic variables seem to have no systematic effect, while fishing effort (labor, boat, and gear), the degree of specialization, and the remoteness of villages are found to be positively related to weekly fish catches.

An Economic Analysis of Soybean Integrated Pest Management

The type ofpest management strategy a farmer chooses is influenced by the amount of risk associated with alternative strategies. This paper examines the attractiveness of alternative pest management strategies used on a representative Virginia soybean farm. Probability distfibutions of net revenue associated with alternative pest control options are simulated and then compared using generalized stochastic dominance criteria. Results suggest risk-averse and, in some cases, risk-preferring farmers would prefer strategies which incorporate an integrated pest management approach to pest control rather than one which relies completely on chemical pest control.