Assessing the Value of Clean Air in a Developing Country: A Hedonic Price Analysis of the Jakarta Housing Market, Indonesia

This paper is motivated by the common argument that clean air is a luxury good and has much less or even no value in a less developed country. It applies a hedonic property value analysis, a method commonly used to infer the value of clean air in developed countries, using a combination of data on house values and their characteristics from the Indonesian Family Life Survey, and data of the ambient level of six different pollutants in Jakarta, Indonesia. The result suggests that air quality may affect property value in Jakarta, indicating a preference toward environmental amenities. Moreover, this study is one of the first hedonic studies that may potentially give comparable estimates of the value of clean air in developing countries.Hedonic Prices, Air Pollution, Indonesia

Estimating the Implicit Value of Crop Stubble as a Barrier to Technology Adoption in Morocco

For mixed cereal-livestock farmers, cereal production provides a bundle of goods. Grain is consumed by the household or sold at market, and crop residues are used as livestock feed. The straw component of crop residue can be bought and sold at market and therefore has a well-established local market price. Crop stubble, the portion of the crop residue left on the ground, is generally not traded and therefore has no market price. Some agricultural technologies require farmers to forgo using crop stubble as feed, and cultivation of high value crops entails sacrificing residue production altogether. In this paper we apply a structural econometric model to household data from Morocco to estimate the implicit value of crop stubble. We use a sample splitting technique to investigate differences in the value of this resource and find that it is significantly higher for smaller farmers, who therefore face an even larger barrier to technology adoption.Mixed cereal-livestock systems, Non-market valuation, Land use, Technology adoption, No-till, International Development, Land Economics/Use, Livestock Production/Industries, O33, Q12, Q24,

Selected Hydrologic Applications of LANDSAT-2 Data: an Evaluation

The author has identified the following significant results. Estimates of soil moisture were obtained from visible, near-IR gamma ray and microwave data. Attempts using GOES thermal-IR were unsuccessful due to resolutions (8 km). Microwaves were the most effective at soil moisture estimates, with and without vegetative cover. Gamma rays provided only one value for the test site, produced by many data points obtained from overlapping 150 meter diameter circles. Even though the resulting averaged value was near the averaged field moisture value, this method suffers from atmospheric contaminants, the need to fly at low altitudes, and the necessity of prior calibration of a given site. Visible and near-IR relationships are present for bare fields but appear to be limited to soil moisture levels between 5 and 20%. The densely vegetated alfalfa fields correlated with near-IR reflectance only; soil moisture values from wheat fields showed no relation to either or near-IR MSS data

Dirichlet Higgs in extra-dimension, consistent with electroweak data

We propose a simple five-dimensional extension of the Standard Model (SM) without any Higgs potential nor any extra fields. A Higgs doublet lives in the bulk of a flat line segment and its boundary condition is Dirichlet at the ends of the line, which causes the electroweak symmetry breaking without Higgs potential. The vacuum expectation value of the Higgs is induced from the Dirichlet boundary condition which is generally allowed in higher dimensional theories. The lightest physical Higgs has non-flat profile in the extra dimension even though the vacuum expectation value is flat. As a consequence, we predict a maximal top Yukawa deviation (no coupling between top and Higgs) for the Brane-Localized Fermion and a small deviation, a multiplication of 2\sqrt{2}/\pi\simeq0.9 to the Yukawa coupling, for the Bulk Fermion. The latter is consistent with the electroweak precision data within 90% CL for 430GeV\lesssim m_{KK}\lesssim 500GeV.Comment: 10 pages, 1 figure, title changed, phenomenological consequences substantially modifie

The wage effects from the use of personal contacts as hiring channels

It has been argued that the use of personal networks in the hiring process has a positive influence on the wages of referred individuals. However, the value of recommendations to the employer varies according to the type of vacancy to be filled and the provider of information on job applicants. Using data from a manufacturing firm, which combine wages from the personnel files and job-histories from interviews with the workers, it is shown that new recruits receive a higher starting wage when recommended to the job by an individual who has direct experience of their productivity. On the contrary, the use of referrals from friends and relatives has no effect on the starting wage and may even be negatively related to wages of workers in unskilled jobs.recruitment; networks; employee referrals; Egypt

Assessing the value of clean air in a developing country: a hedonic price analysis of the Jakarta housing market, Indonesia

This paper is motivated by the common argument that clean air is a luxury good and has much less or even no value in a less developed country. It applies a hedonic property value analysis, a method commonly used to infer the value of clean air in developed countries, using a combination of data on house values and their characteristics from the Indonesian Family Life Survey, and data of the ambient level of six different pollutants in Jakarta, Indonesia. The result suggests that air quality may affect property value in Jakarta, indicating a preference toward environmental amenities. Moreover, this study is one of the first hedonic studies that may potentially give comparable estimates of the value of clean air in developing countries

An invalidation test for predictive models

The standard means of establishing predictive ability in hydrological models is by finding how well predictions match independent validation data. This matching may not be particularly good in some situations such as seasonal flow forecasting and the question arises as to whether a given model has any predictive capacity. A model-independent significance test of the presence of predictive ability is proposed through random permutations of the predicted values. The null hypothesis of no model predictive ability is accepted if there is a sufficiently high probability that a random reordering of the predicted values will yield a better fit to the validation data. The test can achieve significance even with poor model predictions and its value is for invalidating bad models rather than verifying good models as suitable for application. Some preliminary applications suggest that test outcomes will often be similar at the 0.05 level for standard fit measures using absolute or squared residuals. In addition to hydrological application, the test may also find use as a base quality control measure for predictive models generally

Understanding Overbidding in Second Price Auctions: An Experimental Study

This paper presents results from a series of second price private value auction (SPA) experiments in which bidders are either given for free, or are allowed to purchase, noisy signals about their opponents' value. Even though theoretically such information about opponents' value has no strategic use in the SPA, it provides us with a convenient instrument to change bidders' perception about the "strength" (i.e., the value) of their opponent. We argue that the empirical relationship between the incidence and magnitude of overbidding and bidders' perception of the strength of their opponent provides the key to understand whether overbidding in second price auctions are driven by "spite" motives or by the "joy of winning." The experimental data show that bidders are much more likely to overbid, though less likely to submit large overbid, when they perceive their rivals to have similar values as their own. We argue that this empirical relationship is more consistent with a modified "joy of winning" hypothesis than with the "spite" hypothesis. However, neither of the non-standard preference explanations are able to fully explain all aspects of the experimental data, and we argue for the important role of bounded rationality. We also find that bidder heterogeneity plays an important role in explaining their bidding behavior.Overbidding, Second price auctions, Spite, Joy of winning, Bounded rationality

Indonesia

This paper is motivated by the common argument that clean air is a luxury good and has much less or even no value in a less developed country. It applies a hedonic property value analysis, a method commonly used to infer the value of clean air in developed countries, using a combination of data on house values and their characteristics from the Indonesian Family Life Survey, and data of the ambient level of six different pollutants in Jakarta, Indonesia. The result suggests that air quality may affect property value in Jakarta, indicating a preference toward environmental amenities. Moreover, this study is one of the first hedonic studies that may potentially give comparable estimates of the value of clean air in developing countries