Estimating the Willingness to Pay for Waqf Institutions to Finance Education (A case study of Isfahan City)

As governments and private sectors fail to supply public goods in social optimal level, third sector of economy and Waqf institutions become more important in Iran. In this study household's willingness to pay for establishment of Waqf institutions, that finances educational organizations, was investigated in a case study of Isfahan city. Based on contingent valuation method a double one dimensional questionnaire was determined and the Logit Model was estimated using MLE approach. The results show that 44.78% of households have tendency to pay for Waqf institution, where in average willingness to pay is 622570 Rials per month. Also results show that willingness to pay significantly affected by proposed price, household's income, education, job and age.