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Economic Valuation of Urban Informal Activities: Case Study of Flea Markets in Bandung Municipality

  • Bagdja Muljarijadi

    ()

    (Master of Applied Economics Program Graduate School of Economics-Faculty of Economics Padjadjaran University)

  • Rahmat Thio

    ()

    (Master of Applied Economics Program Graduate School of Economics-Faculty of Economics Padjadjaran University)

This study analyzes some social economic aspects of informal activities using case study of flea markets in Bandung Municipality. The objectives are to provide a description of the information we collected during our field survey, and report our findings on the Willingness to Pay (WTP) of people who are doing informal business in the flea markets under study on some services. We use Censored Regression Model to estimate WTP for some relevant services (general user charge, waste disposal services, security, and congestion) in the flea market. We found two important determinants of WTP, which are the amount of working capital, and the ownership of the merchandise.

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File URL: http://lp3e.fe.unpad.ac.id/wopeds/200802.pdf
File Function: First version, 2008
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Paper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 200802.

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Length: 17 pages
Date of creation: May 2008
Date of revision: May 2008
Handle: RePEc:unp:wpaper:200802
Contact details of provider: Postal: Jalan Cimandiri No.6, Bandung 40115
Phone: (062)022-4204510
Fax: (062)022-4204510
Web page: http://ceds.fe.unpad.ac.id
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  1. Blackman, Allen & Shih, Jhih-Shyang & Evans, David & Batz, Michael & Newbold, Stephen & Cook, Joseph, 2006. "The benefits and costs of informal sector pollution control: Mexican brick kilns," Environment and Development Economics, Cambridge University Press, vol. 11(05), pages 603-627, October.
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