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Generalized extreme value (GEV)-based error structures for multiple discrete-continuous choice models

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  • Pinjari, Abdul Rawoof

Abstract

This paper formally derives the class of multiple discrete-continuous generalized extreme value (MDCGEV) models, a general class of multiple discrete-continuous choice models based on generalized extreme value (GEV) error specifications. Specifically, the paper proves the existence of, and derives the general form of, closed-form consumption probability expressions for multiple discrete-continuous choice models with GEV-based error structures. In addition to deriving the general form, the paper derives a compact and readily usable form of consumption probability expressions that can be used to estimate multiple discrete-continuous choice models with general cross-nested error structures. The cross-nested version of the MDCGEV model is applied to analyze household annual expenditure patterns in various transportation-related expenses using data from a Consumer Expenditure Survey in the United States. Model estimation results and predictive log-likelihood based validation tests indicate the superiority of the cross-nested model over the mutually exclusively nested and non-nested model specifications. Further, the cross-nested model was amenable to the accommodation of socio-demographic heterogeneity in inter-alternative covariance across decision-makers through a parameterization of the allocation parameters.

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  • Pinjari, Abdul Rawoof, 2011. "Generalized extreme value (GEV)-based error structures for multiple discrete-continuous choice models," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 474-489, March.
    • Handle: RePEc:eee:transb:v:45:y:2011:i:3:p:474-489
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    Cited by:

    1. Bhat, Chandra R. & Mondal, Aupal & Asmussen, Katherine E. & Bhat, Aarti C., 2020. "A multiple discrete extreme value choice model with grouped consumption data and unobserved budgets," Transportation Research Part B: Methodological, Elsevier, vol. 141(C), pages 196-222.
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    3. Bhat, Chandra R., 2018. "A new flexible multiple discrete–continuous extreme value (MDCEV) choice model," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 261-279.
    4. Jian, Sisi & Rashidi, Taha Hossein & Dixit, Vinayak, 2017. "An analysis of carsharing vehicle choice and utilization patterns using multiple discrete-continuous extreme value (MDCEV) models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 362-376.
    5. Sabreena Anowar & Naveen Eluru & Luis F. Miranda-Moreno, 2014. "Alternative Modeling Approaches Used for Examining Automobile Ownership: A Comprehensive Review," Transport Reviews, Taylor & Francis Journals, vol. 34(4), pages 441-473, July.
    6. Pellegrini, Andrea & Pinjari, Abdul Rawoof & Maggi, Rico, 2021. "A multiple discrete continuous model of time use that accommodates non-additively separable utility functions along with time and monetary budget constraints," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 37-53.
    7. Sikder, Sujan & Pinjari, Abdul Rawoof, 2013. "The benefits of allowing heteroscedastic stochastic distributions in multiple discrete-continuous choice models," Journal of choice modelling, Elsevier, vol. 9(C), pages 39-56.
    8. Palma, David & Hess, Stephane, 2022. "Extending the Multiple Discrete Continuous (MDC) modelling framework to consider complementarity, substitution, and an unobserved budget," Transportation Research Part B: Methodological, Elsevier, vol. 161(C), pages 13-35.
    9. Castro, Marisol & Bhat, Chandra R. & Pendyala, Ram M. & Jara-Díaz, Sergio R., 2012. "Accommodating multiple constraints in the multiple discrete–continuous extreme value (MDCEV) choice model," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 729-743.
    10. Marzano, Vittorio, 2014. "A simple procedure for the calculation of the covariances of any Generalized Extreme Value model," Transportation Research Part B: Methodological, Elsevier, vol. 70(C), pages 151-162.
    11. Saxena, Shobhit & Pinjari, Abdul Rawoof & Paleti, Rajesh, 2022. "A multiple discrete-continuous extreme value model with ordered preferences (MDCEV-OP): Modelling framework for episode-level activity participation and time-use analysis," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 259-283.
    12. Chandra R. Bhat & Subodh K. Dubey & Mohammad Jobair Bin Alam & Waleed H. Khushefati, 2015. "A New Spatial Multiple Discrete-Continuous Modeling Approach To Land Use Change Analysis," Journal of Regional Science, Wiley Blackwell, vol. 55(5), pages 801-841, November.
    13. Kaplan, Sigal & Shiftan, Yoram & Bekhor, Shlomo, 2012. "Development and estimation of a semi-compensatory model with a flexible error structure," Transportation Research Part B: Methodological, Elsevier, vol. 46(2), pages 291-304.
    14. 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.
    15. Lu, Hui & Hess, Stephane & Daly, Andrew & Rohr, Charlene, 2017. "Measuring the impact of alcohol multi-buy promotions on consumers' purchase behaviour," Journal of choice modelling, Elsevier, vol. 24(C), pages 75-95.
    16. Pinjari, Abdul Rawoof & Bhat, Chandra, 2021. "Computationally efficient forecasting procedures for Kuhn-Tucker consumer demand model systems: Application to residential energy consumption analysis," Journal of choice modelling, Elsevier, vol. 39(C).
    17. Guoqiang Wu & Jinhyun Hong & Piyushimita Thakuriah, 2022. "Investigating the temporal changes in the relationships between time spent on the internet and non-mandatory activity-travel time use," Transportation, Springer, vol. 49(1), pages 213-235, February.
    18. Saxena, Shobhit & Pinjari, Abdul Rawoof & Roy, Ananya & Paleti, Rajesh, 2021. "Multiple discrete-continuous choice models with bounds on consumptions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 237-265.
    19. Pinjari, Abdul Rawoof & Augustin, Bertho & Sivaraman, Vijayaraghavan & Faghih Imani, Ahmadreza & Eluru, Naveen & Pendyala, Ram M., 2016. "Stochastic frontier estimation of budgets for Kuhn–Tucker demand systems: Application to activity time-use analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 117-133.
    20. Marzano, Vittorio & Papola, Andrea & Simonelli, Fulvio & Vitillo, Roberta, 2013. "A practically tractable expression of the covariances of the Cross-Nested Logit model," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 1-11.

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