A discrete-continuous model of households' vehicle choice and usage, with an application to the effects of residential density
AbstractThis paper develops a new method to solve multivariate discrete-continuous problems and applies the model to measure the influence of residential density on households' vehicle fuel efficiency and usage choices. Traditional discrete-continuous modelling of vehicle holding choice and vehicle usage becomes unwieldy with large numbers of vehicles and vehicle categories. I propose a more flexible method of modelling vehicle holdings in terms of number of vehicles in each category, using a Bayesian multivariate ordinal response system. I also combine the multivariate ordered equations with Tobit equations to jointly estimate vehicle type/usage demand in a reduced form, offering a simpler alternative to the traditional discrete/continuous analysis. Using the 2001 National Household Travel Survey data, I find that increasing residential density reduces households' truck holdings and utilization in a statistically significant but economically insignificant way. The results are broadly consistent with those from a model derived from random utility maximization. The method developed above can be applied to other discrete-continuous problems.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Transportation Research Part B: Methodological.
Volume (Year): 42 (2008)
Issue (Month): 9 (November)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Train,Kenneth E., 2009.
"Discrete Choice Methods with Simulation,"
Cambridge University Press, number 9780521747387, October.
- Bhat, Chandra R. & Sen, Sudeshna, 2006. "Household vehicle type holdings and usage: an application of the multiple discrete-continuous extreme value (MDCEV) model," Transportation Research Part B: Methodological, Elsevier, vol. 40(1), pages 35-53, January.
- Bhat, Chandra R., 2008. "The multiple discrete-continuous extreme value (MDCEV) model: Role of utility function parameters, identification considerations, and model extensions," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 274-303, March.
- Sivaramakrishnan Srinivasan & Chandra Bhat, 2006. "A multiple discrete-continuous model for independent- and joint-discretionary-activity participation decisions," Transportation, Springer, vol. 33(5), pages 497-515, 09.
- Berkovec, James & Rust, John, 1985. "A nested logit model of automobile holdings for one vehicle households," Transportation Research Part B: Methodological, Elsevier, vol. 19(4), pages 275-285, August.
- Jan K. Brueckner & Ann G. Largey, 2006.
"Social Interaction and Urban Sprawl,"
060707, University of California-Irvine, Department of Economics.
- Bento, Antonio M. & Cropper, Maureen L. & Mobarak, Ahmed Mushfiq & Vinha, Katja, 2003. "The impact of urban spatial structure on travel demand in the United States," Policy Research Working Paper Series 3007, The World Bank.
- West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 735-757, March.
- Dale J. Poirier, 1995. "Intermediate Statistics and Econometrics: A Comparative Approach," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161494, December.
- Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-61, May.
- Goldberg, Pinelopi Koujianou, 1998. "The Effects of the Corporate Average Fuel Efficiency Standards in the US," Journal of Industrial Economics, Wiley Blackwell, vol. 46(1), pages 1-33, March.
- Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
- Bhat, Chandra R., 2005. "A multiple discrete-continuous extreme value model: formulation and application to discretionary time-use decisions," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 679-707, September.
- Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
- Antonio M. Bento & Maureen L. Cropper & Ahmed Mushfiq Mobarak & Katja Vinha, 2005. "The Effects of Urban Spatial Structure on Travel Demand in the United States," The Review of Economics and Statistics, MIT Press, vol. 87(3), pages 466-478, August.
- McCulloch, Robert & Rossi, Peter E., 1994. "An exact likelihood analysis of the multinomial probit model," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 207-240.
- Peter E. Rossi & Greg M. Allenby, 2003. "Bayesian Statistics and Marketing," Marketing Science, INFORMS, vol. 22(3), pages 304-328, July.
- Brownstone, David & Golob, Thomas F., 2009. "The impact of residential density on vehicle usage and energy consumption," Journal of Urban Economics, Elsevier, vol. 65(1), pages 91-98, January.
- Lee, Sungwon & Lee, Bumsoo, 2014. "The influence of urban form on GHG emissions in the U.S. household sector," Energy Policy, Elsevier, vol. 68(C), pages 534-549.
- Mandell, Svante, 2008.
"Policies towards a more efficient car fleet,"
2008:12, Swedish National Road & Transport Research Institute (VTI).
- Ipek Sener & Chandra Bhat, 2012. "Modeling the spatial and temporal dimensions of recreational activity participation with a focus on physical activities," Transportation, Springer, vol. 39(3), pages 627-656, May.
- Pinjari, Abdul Rawoof & Bhat, Chandra, 2010. "A multiple discrete-continuous nested extreme value (MDCNEV) model: Formulation and application to non-worker activity time-use and timing behavior on weekdays," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 562-583, May.
- Rentziou, Aikaterini & Gkritza, Konstantina & Souleyrette, Reginald R., 2012. "VMT, energy consumption, and GHG emissions forecasting for passenger transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 487-500.
- Musti, Sashank & Kockelman, Kara M., 2011. "Evolution of the household vehicle fleet: Anticipating fleet composition, PHEV adoption and GHG emissions in Austin, Texas," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(8), pages 707-720, October.
- Kim, Jinwon, 2012.
"Endogenous vehicle-type choices in a monocentric city,"
Regional Science and Urban Economics,
Elsevier, vol. 42(4), pages 749-760.
- Kim, Jinwon, 2012. "Endogenous Vehicle-Type Choices in a Monocentric City," MPRA Paper 47589, University Library of Munich, Germany.
- Baltas, George & Saridakis, Charalampos, 2013. "An empirical investigation of the impact of behavioural and psychographic consumer characteristics on car preferences: An integrated model of car type choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 92-110.
If references are entirely missing, you can add them using this form.