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A copula-based approach to accommodate residential self-selection effects in travel behavior modeling

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  • Bhat, Chandra R.
  • Eluru, Naveen

Abstract

The dominant approach in the literature to dealing with sample selection is to assume a bivariate normality assumption directly on the error terms, or on transformed error terms, in the discrete and continuous equations. Such an assumption can be restrictive and inappropriate, since the implication is a linear and symmetrical dependency structure between the error terms. In this paper, we introduce and apply a flexible approach to sample selection in the context of built environment effects on travel behavior. The approach is based on the concept of a "copula", which is a multivariate functional form for the joint distribution of random variables derived purely from pre-specified parametric marginal distributions of each random variable. The copula concept has been recognized in the statistics field for several decades now, but it is only recently that it has been explicitly recognized and employed in the econometrics field. The copula-based approach retains a parametric specification for the bivariate dependency, but allows testing of several parametric structures to characterize the dependency. The empirical context in the current paper is a model of residential neighborhood choice and daily household vehicle miles of travel (VMT), using the 2000 San Francisco Bay Area Household Travel Survey (BATS). The sample selection hypothesis is that households select their residence locations based on their travel needs, which implies that observed VMT differences between households residing in neo-urbanist and conventional neighborhoods cannot be attributed entirely to the built environment variations between the two neighborhoods types. The results indicate that, in the empirical context of the current study, the VMT differences between households in different neighborhood types may be attributed to both built environment effects and residential self-selection effects. As importantly, the study indicates that use of a traditional Gaussian bivariate distribution to characterize the relationship in errors between residential choice and VMT can lead to misleading implications about built environment effects.

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Bibliographic Info

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

Volume (Year): 43 (2009)
Issue (Month): 7 (August)
Pages: 749-765

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Handle: RePEc:eee:transb:v:43:y:2009:i:7:p:749-765

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Related research

Keywords: Copula Multivariate dependency Self-selection Treatment effects Vehicle miles of travel Maximum likelihood Archimedean copulas;

References

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Citations

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Cited by:
  1. Chandra Bhat & Ipek Sener, 2009. "A copula-based closed-form binary logit choice model for accommodating spatial correlation across observational units," Journal of Geographical Systems, Springer, vol. 11(3), pages 243-272, September.
  2. Smith, Michael S. & Kauermann, Göran, 2011. "Bicycle commuting in Melbourne during the 2000s energy crisis: A semiparametric analysis of intraday volumes," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1846-1862.
  3. Claudia PIGINI, 2012. "Of Butterflies and Caterpillars: Bivariate Normality in the Sample Selection Model," Working Papers 377, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  4. Erika Spissu & Abdul Pinjari & Ram Pendyala & Chandra Bhat, 2009. "A copula-based joint multinomial discrete–continuous model of vehicle type choice and miles of travel," Transportation, Springer, vol. 36(4), pages 403-422, July.
  5. Reid Ewing & Harry W. Richardson & Keith Bartholomew & Arthur C. Nelson & Chang-Hee Christine Bae, 2014. "Compactness vs. Sprawl Revisited: Converging Views," CESifo Working Paper Series 4571, CESifo Group Munich.
  6. Jeffrey LaMondia & Chandra Bhat, 2012. "A conceptual and methodological framework of leisure activity loyalty accommodating the travel context," Transportation, Springer, vol. 39(2), pages 321-349, March.
  7. 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.
  8. Sobhani, Anae & Eluru, Naveen & Faghih-Imani, Ahmadreza, 2013. "A latent segmentation based multiple discrete continuous extreme value model," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 154-169.
  9. Naveen Eluru & Chandra Bhat & Ram Pendyala & Karthik Konduri, 2010. "A joint flexible econometric model system of household residential location and vehicle fleet composition/usage choices," Transportation, Springer, vol. 37(4), pages 603-626, July.
  10. Cao, Xinyu (Jason) & Xu, Zhiyi & Fan, Yingling, 2010. "Exploring the connections among residential location, self-selection, and driving: Propensity score matching with multiple treatments," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(10), pages 797-805, December.
  11. Abay, Kibrom A. & Paleti, Rajesh & Bhat, Chandra R., 2013. "The joint analysis of injury severity of drivers in two-vehicle crashes accommodating seat belt use endogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 74-89.
  12. 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.
  13. Bhat, Chandra R. & Sener, Ipek N. & Eluru, Naveen, 2010. "A flexible spatially dependent discrete choice model: Formulation and application to teenagers' weekday recreational activity participation," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 903-921, September.
  14. Ipek Sener & Chandra Bhat, 2012. "Flexible spatial dependence structures for unordered multinomial choice models: formulation and application to teenagers’ activity participation," Transportation, Springer, vol. 39(3), pages 657-683, May.
  15. Luis Miranda-Moreno & Naveen Eluru & Martin Lee-Gosselin & Tyler Kreider, 2012. "Impact of ICT access on personal activity space and greenhouse gas production: evidence from Quebec City, Canada," Transportation, Springer, vol. 39(5), pages 895-918, September.

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