2016
DOI: 10.1111/pirs.12124
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The willingness to pay for in‐house piped water in urban and rural Indonesia

Abstract: This paper analyses household preferences for in-house piped water in urban and rural Indonesia via a hedonic price model, specified as a constrained autoregression-structural equation model (ASEM). ASEM reduces bias due to time-varying omitted variables and measurement errors. In addition, it provides a convenient way of testing and correcting for endogeneity. On the basis of the Indonesia Family Life Survey data set, we find that on average urban and rural households have the same willingness to pay for in-h… Show more

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Cited by 13 publications
(8 citation statements)
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“…2 Analytical framework for studying homegarden commercialization the maximum-likelihood approach under the structural equation modeling (SEM) framework. SEM can simultaneously overcome endogeneity problems with regards to simultaneity, measurement errors, as well as omitted variables and provide consistent estimates (e.g., Suparman et al 2016;Ren et al, 2017). In the absence of measurement models, an SEM model is a simultaneous equations system which consistently can be estimated by the (full information) maximum-likelihood method (Greene 2018).…”
Section: Quantitative Data Analysismentioning
confidence: 99%
“…2 Analytical framework for studying homegarden commercialization the maximum-likelihood approach under the structural equation modeling (SEM) framework. SEM can simultaneously overcome endogeneity problems with regards to simultaneity, measurement errors, as well as omitted variables and provide consistent estimates (e.g., Suparman et al 2016;Ren et al, 2017). In the absence of measurement models, an SEM model is a simultaneous equations system which consistently can be estimated by the (full information) maximum-likelihood method (Greene 2018).…”
Section: Quantitative Data Analysismentioning
confidence: 99%
“…The authors build a hedonic pricing model with application in Indonesia. In another study, the same authors employed the ASEM to estimate the willingness to pay for in-house piped water in urban and rural areas of Indonesia (Suparman et al 2014b).…”
Section: Literature Reviewmentioning
confidence: 99%
“…Many studies which utilized public perception focus on health (Harapan et al [36]), environment (Vollmer et al [37], Suparman, Folmer and Oud [38], Ghozali and Kaneko [39], Soo [40]), tourism (Anna [41]), transportation (Hendratmoko, Guritnaningsih, and Tjahjono [42], Ambarwati [43]), and trade (Kojima [44] and Miller et al [45]). Only two studies present public perception in the energy area in the Indonesian context, namely Lensink, Raster and Timmer [46] with observations about the WTP for solar lamps, and Kumashiro et al [47], which evaluated geothermal energy.…”
Section: User Perception To Evaluate Reliability Of Electricity Supplymentioning
confidence: 99%