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A Dynamic Discrete/Continuous Choice Model for Forward-Looking Agents Owning One or More Vehicles

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  • G. Cernicchiaro
  • M. Lapparent

Abstract

During the last $$40$$ 40 years, a large number of studies have analyzed car holding and use behavior. Most of these ignore the dynamics of household and driver needs that very likely drive such decisions. Our work builds up on a disaggregate (compensatory) approach using revealed choices to address these dynamics. We develop a dynamic discrete/continuous choice model of car holding duration for forward-looking agents. We estimate this model using French panel survey data. Our findings indicate that a household’s time preference is a crucial element in car use and holding decisions. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • G. Cernicchiaro & M. Lapparent, 2015. "A Dynamic Discrete/Continuous Choice Model for Forward-Looking Agents Owning One or More Vehicles," Computational Economics, Springer;Society for Computational Economics, vol. 46(1), pages 15-34, June.
    • Handle: RePEc:kap:compec:v:46:y:2015:i:1:p:15-34
    DOI: 10.1007/s10614-014-9449-4
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    Cited by:

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    2. Chenfeng Xiong & Di Yang & Lei Zhang, 2018. "A High-Order Hidden Markov Model and Its Applications for Dynamic Car Ownership Analysis," Service Science, INFORMS, vol. 52(6), pages 1365-1375, December.

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    More about this item

    Keywords

    Forward-looking agents; Discrete/continuous choice modeling; Transportation demand; C35; C41; D12;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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