Preferences for Domestic Water Services in the Middle Olifants Sub-Basin of South Africa

Using household survey data, this study investigates preferences for domestic water services in the Middle Olifants sub-basin of South Africa. Water is a relatively scarce resource in South Africa that is distributed unevenly both geographically and seasonally as well as sociopolitically. For a water management addressing the policy objectives of efficiency in use, equity in access and benefits and long-term sustainability, economic valuation of the different water uses is required. In order to detect households' preferences, a choice experiment of the various water services was conducted. Results suggested the presence of preference heterogeneity and therefore, a latent class model was applied, dividing households into homogeneous groups according to their preferences. Four distinct groups of households could be identified which differ significantly in terms of their socio-economic characteristics, their attitudes toward pricing of water and their satisfaction with current water service levels. Willingness to pay (WTP) estimates of different water service characteristics in all groups indicate that households are willing to pay higher prices for a better and more reliable water services provision. But the amount households are willing to pay differs among the groups. This information is helpful for policy-makers to enable the design of water services in the Middle Olifants according to preferences of local households. Besides, WTP estimation can provide a basis for setting water tariffs

Risk propensity in the foreign direct investment location decision of emerging multinationals

A distinguishing feature of emerging economy multinationals is their apparent tolerance for host country institutional risk. Employing behavioral decision theory and quasi-experimental data, we find that managers’ domestic experience satisfaction increases their relative risk propensity regarding controllable risk (legally protectable loss), but decreases their tendency to accept non-controllable risk (e.g., political instability). In contrast, firms’ potential slack reduces relative risk propensity regarding controllable risk, yet amplifies the tendency to take non-controllable risk. We suggest that these counterbalancing effects might help explain observation that risk-taking in FDI location decisions is influenced by firm experience and context. The study provides a new understanding of why firms exhibit heterogeneous responses to host country risks, and the varying effects of institutions

The Climate Challenge for Agriculture and the Value of Climate Services: Application to Coffee-Farming in Peru

The use of climate information in economic activities, typically provided by climate services, may serve as a possible adaptation strategy to changing climate conditions. The present paper analyzes the value of climate services aimed at improving agricultural productivity through a reduction in weather-associated risks. In the first part, we provide a theoretical foundation for estimating the value of climate services by proposing a stochastic life-cycle model of a rural household which faces uncertainty with respect to the timing and the size of an adverse weather shock. We subsequently calibrate the model to match the environment of coffee producers in the Cusco region of Peru and provide a range of estimates for the value of climate services for a single average household, the region, and the country as a whole. In the second part of the paper we use empirical data to verify the numerical estimates. We assess the value of climate services in the agricultural sector in Cusco based on a choice experiment approach. Data are analyzed using a standard as well as a random parameter logit model allowing for preference heterogeneity. Farmers show a significant willingness-to-pay for enhanced climate services which is particularly related to the service accuracy and geographic resolution. On average, the yearly value of a climate service in the coffee sector is found to be in the range $20.64 -$21.10 per hectare and $8.1 -$8.2 million for Peru as a whole

Arbeitslosigkeit und Stellenannahmebereitschaft: Erste Ergebnisse eines Faktoriellen Survey Moduls

Matching individuals to jobs is a fundamental problem in any labour market. This paper focuses on job characteristics, such as wages, job quality, and distance from the current place of residence, and the impact of these characteristics on the willingness of employed and unemployed individuals to accept new job offers. Using an experimental factorial survey module (FSM) implemented in the fifth wave of a large population survey (Panel Study Labour Market and Social Security), the willingness of employed and unemployed labour market participants to accept new job offers was compared while considering job characteristics like gain of income or commuting distance. In this study, unemployed and employed individuals received the same set of hypothetical job offers. Consistent with theoretical arguments, the about 20,000 evaluations provided by about 4,000 respondents showed that unemployed participants generally exhibit a greater willingness to accept new job offers than employed ones. Moreover, unemployed individuals were likely to make more concessions than employed individuals with respect to job quality, such as accepting fixed-term job offers. Interestingly, little evidence for different decision-making or weightings of mobility costs was found, which enables us to conclude that interregional unemployment disparities can scarcely be explained by unemployed individuals lacking the willingness to work or relocate

Heuristic method for label placement in scatterplots

heuristic plot, metric plot,