Yang, Sungjin; Pa k, Seolwoo
A icle
E alua ing he economic alue o local cul u e and a s
es i al en ance ee o using con ingen alua ion me hod
Global Business & Finance Re iew (GBFR)
P o ided in Coope a ion wi h:
People & Global Business Associa ion (P&GBA), Seoul
Sugges ed Ci a ion: Yang, Sungjin; Pa k, Seolwoo (2024) : E alua ing he economic alue o local
cul u e and a s es i al en ance ee o using con ingen alua ion me hod, Global Business &
Finance Re iew (GBFR), ISSN 2384-1648, People & Global Business Associa ion (P&GBA), Seoul, Vol.
29, Iss. 4, pp. 70-79,
h ps://doi.o g/10.17549/gb .2024.29.4.70
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I. In oduc ion
Cul u al and a s es i als cons i u e no ewo hy
Recei ed: Jan. 27, 2024; Re ised: Ma . 11, 2024; Accep ed: Ma . 13, 2024
† Co esponding au ho : Seolwoo Pa k
E-mail: swpa [email protected]
exp essions o cul u al and a is ic engagemen ,
in ending o dissemina e and app ecia e he alues
inhe en in cul u e and a s among a b oade demog aphic.
Beyond se ing as pla o ms o cul u al en ichmen ,
hese es i als play a pi o al ole in augmen ing he
local image and os e ing economic i ali y, he eby
exe ing a posi i e in luence on he na ional image.
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 4 (MAY 2024), 70-79
pISSN 1088-6931 / eISSN 2384-1648 H ps://doi.o g/10.17549/gb .2024.29.4.∣70
ⓒ2024 People and Global Business Associa ion
GLOBAL BUSINESS & FINANCE REVIEW
www.gb jou nal.o g
o inancial sus ainabili y and people-cen e ed global business1)
E alua ing he Economic Value o Local Cul u e and A s Fes i a
l
En ance Fee o using Con ingen Valua ion Me hod
Sungjin Yang
a
, Seolwoo Pa k
b†
aDepa men o A s and Cul u al Managemen , Jeju Na ional Uni e si y, Jeju, Ko ea
bDepa men o Business, Jeju Na ional Uni e si y, Jeju, Ko ea
A
B S T R A C T
Pu pose: Global cul u al and a s es i als a e o en ci ed o enhance he image o a egion and s imula e i s
economy. Howe e , esea ch and discussions ega ding hese global cul u al and a s es i als ha e mainly ocused
on hei ou comes and s a egies o ac i a ion, wi h limi ed emphasis on e alua ing he in insic alue o he es-
i als hemsel es, pa icula ly hei economic alue. The aim o his s udy is o de ine global cul u al and a s
es i als and p opose me hods o es ima ing hei economic alue.
Design/me hodology/app oach: This s udy employed he Con ingen Valua ion Me hod (CVM) o assess he eco-
nomic alue o cul u al and a s es i als. A ep esen a i e global cul u al and a s es i al was selec ed, and a
double dicho omous choice con ingen alua ion me hod was u ilized o p opose a me hod o assessing willing-
ness- o-pay (WTP) o cul u al and a s es i als. Following a su ey o in es iga e esponden s' WTP and he
alue o 263 alid copies, da a we e analyzed using SPSS and STATA.
Findings: In his s udy, we aimed o es ima e he WTP pe pe son o he admission ee o he Jeju In e na ional
Wind Ensemble Fes i al (JIWEF) and demons a e he e sa ili y o his me hodology h ough analysis using a ious
da a sou ces. Addi ionally, we es ima ed he economic alue o he admission ee o he JIWEF, by mul iplying
he WTP pe pe son o he admission ee by he a e age numbe o a endees.
Resea ch limi a ions/implica ions: Al hough he e a e limi a ions o gene aliza ion ocusing on speci ic es i als,
he esea ch esul s sugges implica ions o o eign isi o a i als and nu u ing global consume s h ough global
cul u e and a s es i als.
O iginali y/ alue: So a , esea ch ela ed o cul u e and a s es i als has mainly ocused on he es i al's pe o m-
ance o e i aliza ion measu es, and esea ch on he e alua ion o he alue o he cul u e and a s es i als hem-
sel es, especially hei economic alue, has no been ac i ely conduc ed. This s udy is di e en in his ega d.
K
eywo ds: Cul u e and a s es i al, Jeju In e na ional Wind Ensemble Fes i al, Economic alue, Con ingen alua ion me hod,
Willingness o pay
Copy igh : The Au ho (s). This is an Open Access jou nal dis ibu ed unde he e ms o he C ea i e Commons A ibu ion
ⓒ
N
on-Comme cial License (h ps://c ea i ecommons.o g/licenses/by-nc/4.0/) which pe mi s un es ic ed non-comme cial use, dis ibu ion
,
and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed.
Sungjin Yang, Seolwoo Pa k
71
Discussions equen ly cen e on es i als as ins umen al
mechanisms o o i ying he epu a ion and in igo a ing
he economic landscape o a gi en egion.
Despi e nume ous s udies and discussions on
cul u al and a s es i als ocusing p ima ily on he
es i als' ou comes o s a egies o hei ac i a ion,
hey ha e ended o examine hese es i als h ough
he lens o non-economic alues such as simple
cul u al o social alues. Due o he ee admission
policies o cul u al a s es i als, which nega e any
isible alue in e ms o en ance ees, a endees
ha e ound i challenging o pe cei e he alue o
hese es i als. Mo eo e , despi e o e ing a ious
bene i s and consis en ly a ac ing la ge numbe s
o a endees, economic alua ion o hese es i als
has no been explici ly conduc ed when compa ed
o o he paid e en s such as speci ic pe o mances
o musicals.
Examining ins ances such as Hawaii in he Uni ed
S a es and Jeju in Sou h Ko ea, whe e global cul u al
and a s es i als a ac a di e se audience encompassing
esiden s and bo h domes ic and in e na ional ou is s,
unde sco es he an icipa ion o a signi ican impac
on he economic dimensions o he local communi y,
inclusi e o i s economic wo h.
Gene ally, global cul u al and a s es i als,
cha ac e ized by he na u e o public and sha ed goods,
o en ha e ei he no en ance ee o en ail minimal
cos s. Consequen ly, assessing hei alue h ough
con en ional ma ke mechanisms and ins i u ions is
limi ed, gi en ha hese es i als quali y as non-
ma ke goods, ende ing he measu emen o hei
economic alue challenging. Di e ging om ypical
commodi ies, cul u al and a s es i als equen ly
encompass a b oade non-ma ke alue alongside hei
ma ke alue. Due o he equen absence o ansac ions
in he ma ke o cul u al and a s es i als, hei
economic alue ends o exceed hei ma ke alue.
A me hod ap o es ima ing he o al alue o cul u al
and a s es i als, encompassing no only he ma ke
alue bu also he non-economic alue, which gene al
goods lack, is he Con ingen Valua ion Me hod
(CVM) (Boo, 2019).
In his s udy, he CVM was employed o assess
he economic alue o a global cul u al and a s
es i al, wi h he Jeju In e na ional Wind Ensemble
Fes i al, one o he ep esen a i e ou is des ina ions
in Sou h Ko ea, selec ed as a case s udy. To es ima e
he economic alue o he cul u al and a s es i al,
he pi o al su ey design phase in ol ed es ablishing
hypo he ical scena ios and conduc ing a su ey.
Th ough s a is ical analysis, he s udy aimed o de i e
he willingness o pay (WTP) pe pe son based on
esponden s' WTP o admission ees. This esea ch
ocuses on es ima ing he WTP pe pe son o he
admission ees o cul u al and a s es i als. By
compa ing and analyzing he es ima ed admission
ees o di e en es i als, i seeks o demons a e
he di e se applicabili y o he esul s. Al hough he
WTP is me ely an es ima ed alue, u ilizing he CVM
o assess he economic alue o admission ees o
non-ma ke cul u al and a s es i als can se e as
ounda ional da a o policy in es men s aimed a
ensu ing he sus ainabili y and de elopmen o global
cul u al and a s es i als wi hin local communi ies.
II. Li e a u e Re iew
A. Economic alue o Local Cul u e and A s
Fes i al
Cul u al and a is ic ac i i ies possess in insic
alues as an essence in hemsel es and exhibi
economic alues based on a se ies o economic
ac i i ies (McCain, 2006). The economic alue o
goods and se ices is con ingen upon p e e ences
and choices de i ed om human desi es, i espec i e
o whe he hey pe ain o ma ke o non-ma ke goods
(Pa k, 2018). Non-ma ke goods, such as cul u al
and a s es i als wi h a p onounced public goods
na u e, di e om con en ional goods in ha hei
alue canno be accu a ely es ima ed by ma ke
mechanisms. Consequen ly, since he 1960s, he e
has been conside able in e es in esou ce economics
in es ima ing he economic alue o esou ce
u iliza ion, pa icula ly o non-ma ke goods like
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 4 (MAY 2024), 70-79
72
cul u al and a s es i als (Wiśniewska, 2019). The
e alua ion o he economic alue o non-ma ke
goods, such as cul u al and a s es i als, in ol es
wo dis inc me hods: he Re ealed P e e ence
Me hod (RP) and he S a ed P e e ence Me hod (SP)
(Hanley and Czajkowski, 2019; Tabasi e al., 2023).
The RP in ol es assessing he impac o a
non-ma ke good, he subjec o e alua ion, on
echnically o s uc u ally associa ed p i a e ma ke
goods, and subsequen ly indi ec ly es ima ing he
alue o he non-ma ke good. In con as , he SP
en ails es ablishing a hypo he ical ma ke o he
non-ma ke good, whe e ansac ions a e concei able,
and di ec ly exp essing he WTP o he non-ma ke
good. No ewo hy me hods wi hin he RP app oach
include he T a el Cos Me hod (TCM) and he
Hedonic P ice Me hod (HPM), while he SP app oach
is exempli ied by he CVM and Conjoin Analysis
Me hod. The RP app oach, being a e ospec i e
assessmen me hod, obse es economic agen s'
ansac ions in he ma ke o es ima e alue. On he
o he hand, he SP app oach, as a p ospec i e
assessmen me hod, es ablishes a i ual ma ke o
he non-ma ke good o es ima e i s alue (Akh e
and Yew, 2013). While he RP app oach is gene ally
less cos ly o apply han he SP app oach, i has
cons ain s in e ms o applicabili y and canno accoun
o non-economic alues, po en ially leading o
heo e ical unde es ima ion. In con as , he SP app oach,
despi e being esou ce-in ensi e, is heo e ically mo e
accu a e and has no cons ain s on applicabili y. Thus,
al hough cos -in ensi e, he SP app oach is heo e ically
p e e able o he RP app oach, explaining why s a ed
p e e ence me hods like con ingen alua ion a e mo e
widely applied (Jo, Ryu, and Shin, 2022).
In his s udy, we aim o adop he CVM, conside ed
he mos widely used and uni e sally accep ed
me hodology among a ious app oaches in academia.
CVM s ands ou as a widely applied and well- ega ded
me hodology among he esea ch me hodologies
de eloped and i e a i ely applied hus a . CVM is
ex ensi ely u ilized o es ima ing he alue o speci ic
non-ma ke goods, and guidelines ha e been es ablished
o ensu e mo e accu a e and objec i e esul s.
Analyzing da a ob ained om he Dicho omous
Choice Con ingen Valua ion Me hod (DC-CVM)
model allows o he examina ion o ep esen a i e
alues o WTP. Two p ominen models o his
analysis a e he U ili y Di e ence Model p oposed
by Hanemann (1984) and he WTP Func ion App oach
in oduced by Came on and James (1987). Gi en
he con en ion ha he U ili y Di e ence Model aligns
wi h u ili y heo y, i is p edominan ly employed in
empi ical s udies o e he WTP Func ion App oach.
The ope a ion o his model ollows he subsequen
p ocedu es. Fi s ly, esponses o ques ions ega ding he
WTP o he s a ed amoun a e modeled, inco po a ing
disc e e esponses such as "yes" o "no." Subsequen ly,
ele an pa ame e s a e es ima ed using maximum
likelihood es ima ion. In he nex s ep, u ilizing he
na u e o he dis ibu ion and de ini ions o median
o mean alues, he median o mean alue o WTP
is calcula ed. Responden s' u ili y o a public good's
s a e (j) based on hei gi en mone a y income (m)
and indi idual cha ac e is ics ec o (S) can be
exp essed h ough he ollowing indi ec u ili y
unc ion, p o ided ha he esponden s accu a ely
know hei u ili y unc ions (u).
In his con ex ,
signi ies he s a e whe e he
public good is ei he una ailable o use o no
p ese ed, while
deno es he s a e whe e he
public good is a ailable o use o p ese ed.
Howe e , he e exis s an unobse able aspec o
esea che s ega ding esponden s' choices o e usals
o he obse ed changes in he s a e o he a ge
public good. The e o e, he indi ec u ili y unc ion
is s uc u ed wi h he obse able de e minis ic
componen
and he unobse able s ochas ic
componen
ϵ
as ollows.
ϵ
The s ochas ic componen ,
ϵ
, in luencing he
indi ec u ili y unc ion is a p obabili y elemen ha
is independen and iden ically dis ibu ed ega dless
Sungjin Yang, Seolwoo Pa k
73
o
, wi h a mean o 0. Assume e e yone seeks o
maximize hei u ili y. In ha case, e e yone sa is ies
he ollowing condi ion: when asked he ques ion
"A e you willing o pay A o he use o p ese a ion
o he public good?" hey espond "yes" while
willingly paying A, hus maximizing hei u ili y.
ϵ≥
ϵ
o
≥ϵϵ
Now, he di e ence in u ili y and he di e ence
in e o e m a e de ined as ollows:
⊿≡
≡ϵ
ϵ
In ha case, he p obabili y o esponding "yes"
is exp essed as ollows:
P ˝˝ P ⊿≥
≡⊿
∙
ep esen s he cumula i e dis ibu ion unc ion
o
. The esponse "yes" is obse ed when
⊿≥
,
and he esponse "no" is obse ed when
⊿〈
. F om
now on, deno ing WTP as
i s cumula i e dis ibu ion
unc ion as a p obabili y a iable is de ined as
.
Meanwhile, he abo e exp ession can be al e na i ely
ep esen ed as ollows:
P ˝˝ P ≥≡
The e o e, by compa ing he wo equa ions, we
can de i e he ollowing ela ionship:
≡⊿
This esul implies ha i ing a disc e e choice
model is an amoun o es ima ing he pa ame e s
o he dis ibu ion unc ion
∙
o WTP. He e,
ep esen s he WTP o ansi ioning om he s a e
o he s a e
. The mean (
) when
can also ha e nega i e alues is commonly calcula ed
as ollows:
∞
∞
Fu he mo e, he median WTP (
) can be ob ained
by sol ing he ollowing equa ion o
:
I WTP mus be g ea e han o equal o 0, he
a e age alue unde his condi ion (
) is calcula ed
as ollows:
∞
The alues de i ed he e co espond o he alue
o one indi idual, so o ex apola e o he o e all
economic alue, he e alua ed alues o all indi iduals
should be summed o he numbe o indi iduals should
be mul iplied by he a e age alue (Gallai e al.,
2009).
III. Me hods
A. Sampling and Selec ion o S a ed Amoun s
To e alua e he alue o he global cul u al and
a s es i al, indi iduals aged 20 and abo e who ha e
expe ienced he Jeju In e na ional Wind Ensemble
Fes i al (JIWEF) a leas once we e selec ed as he
esea ch subjec s. Conside ing he e alua ion o
economic alue wi h he paymen o an en ance
ee, i was deemed a ional o a ge indi iduals who
ha e expe ienced he es i al as he sample g oup.
As i was conside ed inapp op ia e o inqui e abou
he en ance ee o hose who ha e no expe ienced
he es i al, he sample selec ion was limi ed o
a endees wi h p io expe ience. A o al o 38
indi iduals who had expe ienced he JIWEF we e
su eyed using open-ended ques ions, and based on
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 4 (MAY 2024), 70-79
74
hei esponses, ou s a ed amoun s we e de e mined
o he main su ey. In his s udy, 300 samples we e
collec ed, and a su ey was conduc ed among adul s
aged 20 and abo e who had expe ienced he JIWEF
a leas once, including a endees o he 2023 JIWEF
Sp ing Season and hose wi h p io a endance.
To add ess po en ial biases ha may a ise du ing
he su ey phase o he CVM, he ollowing solu ions
we e applied. To minimize s a ing poin bias, a
ealis ic hypo he ical scena io o he JIWEF was
p esen ed o esponden s in a manne ha was easily
unde s andable, and a p e-su ey was conduc ed. To
elimina e paymen me hod bias, en ance ees we e
in oduced as he means ha pa icipan s mus use
i hey wished o a end he es i al. To minimize
s a egic bias, an open-ended ques ion o ma was
used o he p e-su ey, while a double-bounded
dicho omous choice o ma was employed o he
main su ey o main ain in e nal consis ency among
esponden s. Addi ionally, o educe in o ma ion and
hypo he ical bias, a b ie in oduc ion o he his o y
and s a us o he JIWEF was p o ided, a i ual
scena io was aligned wi h ac ual si ua ions, and
a endees wi h p io expe ience we e selec ed as he
sample. T ained in e iewe s we e employed in he
in e iew su ey o minimize compliance bias.
B. Resea ch Model o Es ima ing WTP
Based on p io esea ch, his s udy selec ed
a iables expec ed o in luence he WTP o he
en ance ee o he JIWEF. The chosen a iables
encompassed gene al cha ac e is ics and a endee
beha io s. Gene al cha ac e is ics included gende
(GEN), age (AGE), educa ion le el (EDU), and income
(INC). A endee beha io s we e ep esen ed by he
equency o a endance (FRE), du a ion o a endance
(TIM), sa is ac ion le el (SAT), enjoymen (ENJ),
in en ion o e isi (REV), in en ion o wo d o mou h
(WOM), app ecia ion o pe o mances (LIS), leisu e
ac i i ies (LEI), educa ional pu poses (STU), job
ele ance (REL), wo d-o -mou h ecommenda ions
om acquain ances (REC). Responden s indica ed
hei WTP o he ini ial s a ed amoun o suppo
and enhance JIWEF, wi h esponses ca ego ized as
"yes" o "no." To analyze such closed-ended ques ions,
logis ic eg ession was employed. The explana ion
o his app oach is p o ided as ollows:
P ˝˝
P ˝˝
P obabili y ha he esponden
answe s "yes" ega ding he s a ed amoun
Es ima ed coe icien , i.e., he signi ican
coe icien among he independen a iables (explana o y
a iables) such as gende , age, educa ion, income,
e c.
Fu he mo e, o es ima e he WTP pe pe son, we
applied and analyzed he logis ic unc ion, a common
p obabili y dis ibu ion. The logi model assumed he
logis ic unc ion as he unc ional o m o he
cumula i e dis ibu ion unc ion (Came on, 1988;
Wa anabe and Asano, 2009).
exp
Based on he es ima ed esul s om such a
p obabili y model, he WTP pe pe son can be
es ima ed as he median and mean alues. The
s a is ical es ima ion me hod o he linea logi model
uses he Maximum Likelihood Es ima ion, and he
es ima ed coe icien s a e alid and consis en
es ima o s. Based on his, he median and mean alues
o WTP can be de i ed as ollows:
Ln
Sungjin Yang, Seolwoo Pa k
75
IV. Resul s
A. Sample
This su ey was conduc ed o assess he economic
alue o he en ance ee o he JIWEF. P e-su ey
esul s yielded ini ial p oposed amoun s o $10, $20,
$30, and $40. The su ey a ge ed a o al o 300
pa icipan s, wi h 118 esponden s om o line
su eys and 182 om online su eys. The su ey
me hod p ima ily ollowed indi idual in e iews
acco ding o NOAA Panel guidelines, wi h simul aneous
online and o line da a collec ion. As a esul , 263
alid esponses ou o 300 collec ed su eys we e
u ilized o analysis. Gene al cha ac e is ics and basic
s a is ical analysis o he su ey pa icipan s we e
conduc ed using SPSS 24, while STATA 14 was
employed o s a is ical analysis o es ima e he
economic alue o he en ance ee o he JIWEF.
The gende dis ibu ion o esponden s who
pa icipa ed in he Jeju In e na ional Classical Music
Fes i al showed ha 136 we e male (51.7%), and
127 we e emale (48.3%), indica ing a sligh ly highe
male esponse a e.
Looking a he age dis ibu ion o esponden s,
i was obse ed ha he e we e 83 esponden s in
hei 20s (31.6%), 42 in hei 30s (16.0%), 75 in
hei 40s (28.5%), 48 in hei 50s (18.3%), 13 in
hei 60s (4.9%), and 2 in hei 70s (0.8%). The
mos p e alen age g oup was he 20s, ollowed by
he 40s. The high ep esen a ion o esponden s in
hei 20s may be a ibu ed o expe iences such as
a ending pe o mances as pa o school e alua ions
and pa icipa ing as olun ee s.
B. WTP Es ima ion
The WTP o he en ance ee o JIWEF based
on he ini ial p oposed amoun , wice he ini ial
p oposed amoun , and hal he ini ial p oposed amoun
is p esen ed in Table 1.
WTP es ima ion was conduc ed wice, dis inguishing
be ween es ima ion wi h and wi hou co a ia es.
In he es ima ion wi hou co a ia es, he WTP was
con i med o be a cons an coe icien o $23.631
(see Table 2).
To es ima e a model including co a ia es, he
analysis was employed, whe ein he WTP o he
speci ied amoun se ed as he dependen a iable.
Canonical demog aphic a ibu es such as gende (GEN),
age (AGE), educa ional a ainmen (EDU), income
(INC), alongside isi o beha io al de e minan s
encompassing isi equency (FRE), du a ion o isi
Ini ial o e
amoun
WTP Double he
ini ial o e
amoun
WTP 0.5x he ini ial
o e amoun
WTP
YES(%) NO(%) YES(%) NO(%) YES(%) NO(%)
$10 39(61.9) 24(38.1) $20 21(53.8) 18(46.2) $5 13(54.2) 11(45.8)
$20 35(47.3) 39(52.7) $40 16(45.7) 19(54.3) $10 15(38.5) 24(61.5)
$30 31(48.4) 33(51.6) $60 6(19.4) 25(80.6) $15 19(57.6) 14(42.4)
$40 12(19.4) 50(80.6) $80 3(25) 9(75) $20 29(58) 21(42)
o al 117(44.5) 146(55.5) o al 46(39.3) 71(60.7) o al 76(52.1) 70(47.9)
Table 1. WTP acco ding o he sugges ed amoun
Coe . S d. E .
〉
[95% Con idence In e al]
Be a _cons 23.631 1522.688 0.000 20.646 26.615
Numbe o obs = 263
Log likelihood = -362.920
Table 2. The es ima ion esul s o a model excluding co a ia es
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 4 (MAY 2024), 70-79
76
(TIM), sa is ac ion (SAT), hedonic enjoymen (ENJ),
epea isi a ion in en (REV), wo d-o -mou h in en
(WOM), pe o mance a endance (LIS), leisu e pu sui
(LEI), educa ional mo i a ion (STU), occupa ional
ele ance (REL), and in e pe sonal in luence (REC)
we e posi ed as independen a iables, o co a ia es,
o he analy ical amewo k.
Resul s o he analysis disclosed ha a iables
pe aining o isi o beha io s, speci ically he
in en ion o ecommend and educa ional mo i a ion,
exe ed s a is ically signi ican in luences on he
WTP. The posi i e coe icien associa ed wi h he
in en ion o ecommend sugges s ha an ele a ed
in en o ad oca e he e en co esponds o an
augmen ed WTP o he admission ee. This
unde sco es he p omo ional e icacy o le e aging
in en ion o ecommend wi hin he con ex o he
JIWEF. Simila ly, he posi i e coe icien linked o
educa ional mo i a ion signi ies ha a heigh ened
inclina ion owa ds pa icipa o y engagemen o
educa ional pu poses co esponds o an inc eased
WTP. I is pos ula ed ha he implemen a ion o
di e se p og ams such as music semina s and
educa ional ini ia i es du ing he es i al du a ion
would yield e icacious ou comes. Mo eo e , he
WTP including co a ia es was de e mined o be
app oxima ely $23.632 (see Table 3).
Applying he logis ic unc ion examined ea lie
and analyzing he es ima ed esul s o he p obabili y
model, he WTP pe capi a can be es ima ed as shown
in Table 4, wi h a median alue o $23.497 and
a mean alue o $23.688.
C. Es ima ion o Economic Value
This s udy es ima ed he economic alue o usage,
hence i aims o expand i s scope o local es i als
in o de o compa e cases whe e he means o paymen
a e en ance ees.
Va iables Coe icien S d. E . p- alue Waid Chi2Log likelihood
GEN 4012.376 3054.036 0.189
36.66 -342.98
AGE 118.8887 142.4758 0.404
EDU 2614.813 2124.333 0.218
INC 379.5768 1330.954 0.775
FRE -90.22835 220.2953 0.682
TIM 3100.984 1622.858 0.056
SAT -426.0543 2992.682 0.887
ENJ -2718.411 4350.768 0.532
REV 1401.228 4186.462 0.738
WOM 7603.857 3639.958 0.037*
LIS 5482.327 7255.438 0.45
LEI 2244.946 8223.095 0.785
STU 35954.68 15524.95 0.021*
REL 8520.808 7952.406 0.284
REC -5099.056 9593.958 0.595
Cons an -32021.67 14925.98 0.032
WTP: 23.632
* p < 0.05
Table 3. The es ima ion esul s o a model including co a ia es
Median o WTP pe 1 isi o A e age o WTP pe 1 isi o
$23.497 $23.688
Table 4. Median and mean alues o pe capi a WTP
Sungjin Yang, Seolwoo Pa k
77
V. Conclusions
Today, cul u al and a s es i als a e expanding
hei unc ion beyond local b and de elopmen o
se e as na ional b ands. Howe e , due o hei
non- i al ous and non-excludable cha ac e is ics as
public goods, economic alua ion has no been
explici ly conduc ed hus a . The economic alue
o public goods is di ided in o use alue and non-use
alue, and measu ing he o al alue, which includes
non-use alue ha is di icul o mone ize, poses
signi ican challenges. The e o e, in his s udy, a
quan i a i e inqui y was unde aken employing he
widely adop ed Double-Bounded Dicho omous
Choice Con ingen Valua ion Me hod (DB-DC
CVM), a me hod well-es ablished o i s applica ion
in he comp ehensi e assessmen o he economic
wo h o non-ma ke goods. The s udy speci ically
sough o measu e he economic alue o he local
in e na ional music es i al, a cul u al and a s es i al
cen e ed a ound musical pe o mances, by le e aging
he DB-DC CVM. The analy ical app oach in ol ed
he elucida ion o gene al a ibu es and a endance
pa e ns o esponden s who had expe ienced his
Fes i al. Subsequen ly, a iables deemed p edic i e
o in luencing he WTP o admission ees we e
iden i ied and inco po a ed as explana o y a iables
wi hin he analy ical amewo k.
The esul s o his s udy a e summa ized as ollows.
Fi s , o disce n he WTP o he admission ee o
he JIWEF, a logis ic eg ession model was employed.
The ou comes indica ed a posi i e associa ion
be ween he in en ion o ecommend and he WTP
o he admission ee, wi h a co olla y dec ease in
WTP co esponding o a diminished in en ion o
ecommend. Simila ly, a heigh ened inclina ion
owa d pa icipa o y engagemen o educa ional
pu poses was ound o posi i ely impac he WTP
o he admission ee, while a lowe in en ion o
educa ional pu poses co ela ed wi h a educed WTP.
S a is ical sc u iny alida ed he signi icance o hese
obse a ions, elucida ing ha he coe icien s o he
explana o y a iables, in en ion o ecommend and
in en ion o educa ional pu poses, bo e posi i e
signs. Seconda ily, he compu ed economic alua ion
o he JIWEF un eiled an a e age WTP pe capi a
o $23,688. Subs an ia ed by his me ic, he economic
wo h o he es i al's admission ee was assessed.
In he absence o p ecise a endance s a is ics,
es ima es de i ed om he "E alua ion Resea ch
Repo o he Jeju In e na ional Wind Ensemble
Fes i al," an annual publica ion by he o ganizing
commi ee, we e elied upon. Fac o ing in he
ami ica ions o he COVID-19 pandemic, he a e age
es ima ed numbe o a endees o e he h ee
p e-pandemic yea s (2017: 45,000, 2018: 50,000,
2019: 43,565) was compu ed as 46,188. To me ic
he economic wo h o he admission ee, his a e age
o al a endance igu e was mul iplied by he WTP
pe capi a. Consequen ly, he de i ed es ima e o
he economic alue o he Jeju In e na ional Music
Fes i al's admission ee amoun ed o $1,094,101.344.
Fu u e in es iga ions may ex end he analysis by
calcula ing he pe capi a spending a he es i al,
o e ing insigh s in o he acc ued economic bene i s.
The academic and p ac ical implica ions o his
s udy a e as ollows. Fi s ly, he signi icance lies
in he es ima ion o he economic alue o local
cul u al and a s es i als, a domain ha has been
ela i ely unde explo ed in exis ing esea ch. P io
s udies p edominan ly ocused on es ima ing he
non-economic alue o egional es i als, wi h a
sca ci y o esea ch dedica ed o es ima ing economic
alue. This s udy, he e o e, se es as a s a ing poin ,
an icipa ing u he esea ch endea o s in he
es ima ion o economic alues o egional es i als.
Second, om an academic pe spec i e, p io esea ch
on local cul u al and a s es i als has been conduc ed
om a ious angles. Economic aspec s ha e been
explo ed, including analyses o he socio-economic
impac , economic ipple e ec s, and ma ke ing
s a egies o such cul u al and a s es i als. Howe e ,
he economic alua ion a emp ed in his s udy
ep esen s a pionee ing e o and adds signi icance
o he exis ing body o knowledge. Thi d, he s udy
con ibu es o he unde s anding ha ac ual es i al
admission e enue is con ibu ing o he inancial
