The use of survey or contingent valuation methods to estimate an individual's valuation of non-marketed goods, especially environmental resources, has attracted increasing attention in recent years. Initially, research efforts in this area were viewed by a majority of the economics profession with considerable skepticism. However, with the increased need for information on individuals’ valuation of a whole range of environmental resources and limitations on the ability of indirect market-based methods for valuing all of these resources, there has been a substantial increase in the use of contingent valuation methods to provide this information. Indeed, a recent state-of-the-art assessment (see Cummings et al. [1984]) of the contingent valuation method (CVM) has been able to develop a set of reference operating conditions under which it was reasonable to expect the CVM approach would yield estimates with accuracy that was approximately comparable to the indirect methods. Clearly the definition of these conditions is a judgmental one. Nonetheless, it was based on a substantial number of comparative studies evaluating the relationship between CVM and indirect market estimates of the benefits associated with changes in specific environmental resources. Moreover, it does reflect the changing attitude toward the CVM approach. It is therefore particularly appropriate to consider new directions in the development of the contingent valuation method.

I want to begin with a caveat. I have no training in psychology, and my interest in the field is that of an amateur. Thus, the confidence with which I shall make statements about psychological facts is in inverse proportion to my expertise. My point of departure is the assumption that the most serious problem with contingent valuation (CV) methodology is hypothetical bias. Apart from introspection, the evidence for this assumption comes from two classic studies conducted by Richard Bishop and his colleagues at the University of Wisconsin. The first study by Bishop and Heberlein (1979) involved a survey of two random samples of individuals who had obtained permits to hunt ducks in the Horizon Zone of East Central Wisconsin. One sample group was asked the hypothetical question whether they would be willing to sell their permit for a specified sum of money (this sum differed among individuals). The other sample group was given a real opportunity to sell their permit for a specified sum of money; of 237 hunters surveyed, 105 actually sold their permits.

Demand measurement for outdoor recreation has developed on a course that reflects trends in both theoretical economics and recreation policy. The early insights of Hotelling and Clawson and Knetsch express a dominant concern with estimating the demand for a single recreation site and the economic value of publicly provided, new recreation sites. Their theoretical framework was consistent with the emerging public goods theory which viewed recreation sites as homogeneous public goods demanded by homothetic consumers. In light of the emphasis on expanding leisure opportunities and public acquisition of recreational parkland in the national recreation policy of this period, their analysis was timely and an important benchmark for further refinements in measuring the economic value of recreation sites (Burt and Brewer; Cicchetti, Fisher and Smith).

An interregional model which minimizes production and transportation costs for broilers was developed and tested. Ten production and 22 consumption regions were defined. The results indicate that current flow patterns are relatively efficient given the existing production capacities. As demand increases the increased production will tend to be in the Southwest (Texas) and to a lesser extent in the Southeast (North Carolina). Shadow prices indicate that in the longer run production in the Northeast will continue to decline in relative terms and perhaps in absolute terms.

Regional economic growth based on private sector job creation is often proposed as a policy for reducing the incidence of regional unemployment, poverty and dependency. One factor that could limit the impact of economic growth on the employment and poverty status of an area's indigenous population is the area's public assistance system. This study evaluates the impact of recent changes in federal welfare legislation (HR 3982) on the work incentives and the poverty and dependency status of Delaware female household heads receiving Aid to Families with Dependent Children (AFDC) assistance. Specifically, the study estimates the implicit marginal tax rates that such household heads would face by accepting employment in private sector jobs to which they are potential entrants under the pre and post HR 3982 conditions. In addition, the study examines the effect of the HR 3982 changes on the poverty and dependency status of such households.

Researchers and decision makers are currently faced with a reduced supply of agricultural marketing information at both federal and state levels. Although a number of on-line computer informational sources are available to help fill this gap, the data are relatively expensive and often not available in the form or detail needed at the farm level. This paper examines expected future sources of agricultural information in the public, private and semi-public/private sectors. A working model of a semi-public/ private informational system is presented. The proposed self-help grower informational model system can be tailored to provide farm level data needed at a reasonable cost.

One option for the disposal of sewage sludge is land spreading, including application to private croplands. Land spreading may allow some of the sewage treatment costs to the municipality or county to be offset by farmers’ payments for sludge as a crop producing resource. This study investigates the conditions under which a market for sludge will emerge. A linear programming model of a profit maximizing corn for gain farm is formulated and the quantity of sludge available is parametrically varied to trace out marginal productivity curves under various situations. The results for Anne Arundel county, Maryland sludge show a range in value from 0–35 $/ton at application rates from 0–20 tons/acre/year for three years.

The effect that selected characteristics of a Pennsylvania hay auction has on winning bids of loads of hay are presented in this paper. Survey data from 107 buyers over the period September 1982 to April 1983 were used. Hay type, perceived quality, and the intended use of the hay were found to be significant factors in explaining prices paid per ton. Sellers could increase their revenues by producing alfalfa hay, alfalfa and legume-grass hay of higher quality, and attending marketing days with a larger number of horse feed buyers.

Policy issues surrounding Federal programs for land retirement as a means of curtailing soil erosion are discussed in this paper. The analysis is structured around productivity differentials observed for New York cropland rated as highly erosive, moderately erosive, or nonerosive.

This paper examines the acquisition of wood stoves by New Hampshire households through use of a utility-maximizing discrete choice model. The analysis is based on the hypothesis that wood stoves are acquired to decrease the monetary costs of home-heating. Operating costs associated with heating with conventional fuel burning capital and with a combination of conventional and wood stove heating capital are estimated. These operating costs are used to estimate probabilities of 1979 wood stove acquisition for particular types of New Hampshire households.

Increased concern for the environmental effects of pesticides has led to considerable interest in optimal management strategies for controlling pest populations affecting agricultural production. This issue has been considered by a number of researchers (Feder and Regev; Hall and Norgaard; Hueth and Regev; Lazarus and Swanson; Marsolan and Rudd; and Talpaz and Frisbie). With the exception of Feder and Regev, these studies considered only one species. This approach involves serious limitations since a grower is generally confronted with multiple species during the production period For example, insect prey-predator relationships may exist in the field (Feder and Regev). Alternatively, as an insect pest develops through a number of growth stages, multiple pests in effect exist (Reichelderfer and Bender).

A survey of agricultural banks in New York State found that inability to compete with the low interest rates offered by the Farm Credit Service (FCS) rather than the unavailability of funds per se was limiting agricultural lending by commercial banks. A MASI-like intermediary would (1) be of assistance only to banks unable to use loan participations and with high CD costs and (2) would likely require a large multistate area to be feasible. Only eight percent of the New York banks serving agriculture qualify for FICB funding. Further, FICB funding would be profitable only if banks experienced illiquidity at least 50 percent of the time.

Operating cost efficiency is evaluated on Pennsylvania dairy farms using a modification of the Farrell efficient unit isoquant frontier method. Evaluating farms by herd size groups, the average measure of cost efficiency ranged from 70 to 80 percent. Farms with larger herds were more homogeneous in efficiency than farms with smaller herds. Regression analysis was used to evaluate for differences in cost efficiency by herd size group.