• KDI Journal of Economic Policy
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• v.34 no.1
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• pp.135-168
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• 2012

This study analyzes ways to detect protest responses (hereafter, PR zero-bid) in the contingent valuation method (CVM). In order to distinguish PR zero-bids from true zero-bids (non-PR zero bids), this study adopts the concept of the implicit willingness to pay employing the Hicksian compensating surplus and the Taylor's 1st order approximation. When a respondent proposes a zero-bid (i.e., WTP=0) and chooses a PR filtering item to indicate that her implicit WTP is not necessary zero, her response is identified as a PR zero bid. PR filtering items falling into the PR zero bids category include the uncertainty of information, distrust in the government and project achievement, disagreement to project plans, discontent with the fairness of public works and their payment method and animosity against the CVM itself. The empirical analysis shows that PR zero bids take place systematically in particular respondent groups: respondents who have never used similar facilities before nor plans to use the facility provided by the public project, the employed, and low income groups. In conclusion, the study suggests that a CVM questionnaire needs to be designed carefully to minimize problems associated with PR zero bids and the potential risks of having sample selection bias should be concerned.

• International Journal of Advanced Culture Technology
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• v.5 no.4
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• pp.26-30
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• 2017

The Ministry of Patriots and Veterans Affairs decided to designate Goesan County as a comprehensive venue for determining the geography of the land, the efficient management of land, the public opinion of local residents, and the establishment of a group of civic complaints. In the meantime, Goesan focused on attracting high-ranking government officials, including high-ranking government officials and high-ranking tourist attractions, to attract high-ranking government officials, including high-ranking officials of the National Guard, to promote the nation's bid to attract high-ranking government officials. In this paper, we intend to conduct a study centered on the controversy over the survival of the Korean National Guard. conflict between local governments is a non-authoritative administrative administrative body, it can be regarded as a matter of difficulty by intervening in any autonomous matter, and ultimately, it can be changed to judicial judgment. This is not to say that the residents of Goesan county will protest this time. Even though Goesan promotes regional development and development for local residents, it can not guarantee that the judgment of Goesan County will be held in the same situation. Thus, it should develop a win-win strategy based on the threat of sabotage. To this end, I would like to suggest the following measures.

• Environmental and Resource Economics Review
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• v.20 no.3
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• pp.595-628
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• 2011

This study investigates the issues and suggests reform measures in applying CV methods to the Korea Development Institute's (KDI's) Preliminary Feasibility Test (PFT) of public projects. Most public projects on culture, science and environment evaluated under the PFT system belong to the category of "nonstandard" projects whose outputs are non-marketed, and CV is currently the main tool used for their benefit estimation. A careful discussion and investigation is recommended for the selection of target population, payment vehicle, and number of payment times. Operating expert reviews, focus group interviews, and pre-tests is highly recommended to reduce the potential bias involved in the CV studies. A single or double bounded dichotomous choice format is the most popular design of questionnaire, but we identify several undissolved issues in designing and implementing the format. Some other forms of inducing WTPs may still deserve our consideration. Various specifications of the WTP function need to be tried and tested based on their stability, in particular. Employing a nonparametric approach is also recommended. Treatments of 0 or negative WTPs and protest bids are shown to be the most serious issues that affect the estimation results significantly. We review diverse measures of handling those issues and summarize their advantages and shortcomings.