Quantifying the non-market value associated with the restructuring of local government tier system: an application of Choice Experiments(CE)

Young-chool Choi

This paper attempts to quantify intangible benefits and costs associated with the tier system change of local governments, with a special reference to the Jeju region in Korea. For this purpose, it employs the Choice Experiments(CE) method which has not been significantly adopted yet in the field of public administration and tries to calculate how much benefits and costs can be arised from the restructuring of existing tier system on the part of residents living in Jeju region. This paper intends to introduce mixed logit to the valuation of intangible and non-market public goods. Mixed logit enables me to allow for the correlation between repeated choices and also allows me to confirm that the costs linked to the restructuring of the existing tier system of local governments in Jeju are not serious.

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