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

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Bagdja Muljarijadi & Rahmat Thio, 2008. "Economic Valuation of Urban Informal Activities: Case Study of Flea Markets in Bandung Municipality," Working Papers in Economics and Development Studies (WoPEDS) 200802, Department of Economics, Padjadjaran University, revised May 2008.
    • Handle: RePEc:unp:wpaper:200802
    as

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    File URL: http://ceds.feb.unpad.ac.id/wopeds/200802.pdf
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    References listed on IDEAS

    as
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    3. 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(5), pages 603-627, October.
    4. Angelini, John. & Hirose, Kenichi, 2004. "Extension of social security coverage for the informal economy in Indonesia : surveys in the urban and rural informal economy," ILO Working Papers 993753303402676, International Labour Organization.
    5. Liimatainen, Marjo-Riitta., 2002. "Training and skills acquisition in the informal sector : a literature review," ILO Working Papers 993571203402676, International Labour Organization.
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    More about this item

    Keywords

    Flea market; informal activity; WTP;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance

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