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1、Title:Estimationofchoiceexperimentwhenrandomcoefficientsarecorrelated:ApplicationtovaluationoffarmanimalwelfareAuthor:JeongHwanBaeAffiliation:AssistantProfessorofDepartmentofEconomics,ChonnamNationalUniversityAddress:Yongbongro77,Bukgu,Gwangju,Republico
2、fKorea.Email:jhbae@jnu.ac.krTel:+82-62-530-1542SubmittedtoFoodPolicyAbstractAchoiceexperiment(CE)hasbeenpopularlyappliedtovariousfields,includingenvironmentaleconomicsandagriculturaleconomics.Concerningfarmanimalwelfare(FAW),therehavebeenseveralvaluatio
3、nstudies,yet,theCEhasneverbeenemployedtoestimatethewillingnesstopay(WTP)forindividualattributesoftheFAW.ThisstudyattemptstoapplytheCEinordertoestimateWTPforFAW,whichusesamixedlogitmodel,allowingforcorrelationsamongrandomcoefficientsofattributesoftheFAW.
4、Amultinomiallogitandrankorderedlogitmodelswereemployedtocomparetheestimateswiththosebasedonthemixedlogitmodel.TheestimationresultsshowthatdirectusevaluewasevaluatedmorehighlythanindirectusevalueassociatedwiththeattributesofFAW.Furthermore,positivecorrel
5、ationsexistamongtherandomcoefficientsoftheattributes.ThestudyconcludesthatbyallowingforcorrelationamongrandomcoefficientsoftheattributesintheapplicationofthemixedlogitmodelontheCEapproach,outcomes,basedonvaluationandheterogeneityofpreferencesrelativetoa
6、ssumingnocorrelationsamongtherandomcoefficientsoftheattributes,mayflourish.Keywords:Farmanimalwelfare,Choiceexperiment,Mixedlogitmodel,CorrelatedrandomcoefficientsI.IntroductionThecontingentvaluationmethod(CVM),alsoknownasastatedpreference(SP)approach,h
7、asbeenpredominantlyappliedtomeasurepeople’swillingnesstopay(WTP)forlivestockthatareproducedunderthefarmanimalwelfare(FAW)regulation(Bennett,1995,1996a,1996b,1997,2002;BennettandLarson,1996;Rolfe,1999;Costello,2000;Frykblomand1Andersson,2002;BennettandBl
8、aney,2002;Bennettetal.,2002;Burgessetal.,2003;Glassetal.,2005;Carlssonetal.,2007a,2007b;MoranandMcVittie,2008;Tonsoretal.,2009;LagerkvistandHess,2010).However,theCVMframeworkhasbeencriticizedduetoitsnumerouspotentialbiases,includ
