South Koreans' willingness to pay for Korean unification

Abstract

This paper analyses the willingness to pay (WTP) of South Koreans for Korean unification. To deal with zero WTP responses given by a large number of people, a mixture model is used. The mean annual WTP for Korean unification is 5765 Korean won (GBP 2.88) per person. The aggregate value to South Koreans would then be 194.62 billion Korean won (GBP 97.31 million) annually.

Notes

¹ The author experimented with several alternative distributions such as log-normal, Gamma, and Beta. However, changing distribution did not affect the main qualitative conclusions of the study. Thus, the detailed results of the experiments have been omitted here to save space.