CEDS UNPAD

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

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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Center for Economics and Development Studies is a research center under the Department of Economics, Padjadjaran University, Indonesia. A leading research institute in Indonesia in the area of economics and development studies.
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