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On the use of a Modified Latin Hypercube Sampling (MLHS) method in the estimation of a Mixed Logit Model for vehicle choice

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Author Info
Hess, Stephane
Train, Kenneth E.
Polak, John W.

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Abstract

Quasi-random number sequences have been used extensively for many years in the simulation of integrals that do not have a closed-form expression, such as Mixed Logit and Multinomial Probit choice probabilities. Halton sequences are one example of such quasi-random number sequences, and various types of Halton sequences, including standard, scrambled, and shuffled versions, have been proposed and tested in the context of travel demand modeling. In this paper, we propose an alternative to Halton sequences, based on an adapted version of Latin Hypercube Sampling. These alternative sequences, like scrambled and shuffled Halton sequences, avoid the undesirable correlation patterns that arise in standard Halton sequences. However, they are easier to create than scrambled or shuffled Halton sequences. They also provide more uniform coverage in each dimension than any of the Halton sequences. A detailed analysis, using a 16-dimensional Mixed Logit model for choice between alternative-fuelled vehicles in California, was conducted to compare the performance of the different types of draws. The analysis shows that, in this application, the Modified Latin Hypercube Sampling (MLHS) outperforms each type of Halton sequence. This greater accuracy combined with the greater simplicity make the MLHS method an appealing approach for simulation of travel demand models and simulation-based models in general.

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Publisher Info
Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

Volume (Year): 40 (2006)
Issue (Month): 2 (February)
Pages: 147-163
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Handle: RePEc:eee:transb:v:40:y:2006:i:2:p:147-163

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  1. Heiss, Florian, 2006. "Nonlinear State-Space Models for Microeconometric Panel Data," Discussion Papers in Economics 1157, University of Munich, Department of Economics. [Downloadable!]
  2. Ricardo Scarpa & Mara Thiene & Kenneth Train, 2006. "Utility in WTP Space: A Tool to Address Confounding Random Scale Effects in Destination Choice to the Alps," Working Papers in Economics 06/15, University of Waikato, Department of Economics. [Downloadable!]
  3. Ricardo Scarpa & Mara Thiene & Francesco Marangon, 2007. "Using flexible taste distributions to value collective reputation for environmentally-friendly production methods," Working Papers in Economics 07/24, University of Waikato, Department of Economics. [Downloadable!]
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  4. Stephane Hess & Denis Bolduc & John Polak, 2005. "Random Covariance Heterogeneity in Discrete Choice Models," ERSA conference papers ersa05p375, European Regional Science Association. [Downloadable!]
  5. Heiss, Florian & Winschel, Viktor, 2006. "Estimation with Numerical Integration on Sparse Grids," Discussion Papers in Economics 916, University of Munich, Department of Economics. [Downloadable!]
  6. Alexander Staus, 2008. "Standard and Shuffled Halton Sequences in a Mixed Logit Model," Hohenheimer Agrarökonomische Arbeitsberichte 17, University of Hohenheim, Institute for Agricultural Policy and Agricultural Markets. [Downloadable!]
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