An Indirect Utility Model of Multiple Car Ownership and Use

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An Indirect Utility Model of Multiple Car Ownership and Use

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Jan Rouwendal () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)
John Pommer () (Connekt, Delft)

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Jan Rouwendal

Abstract

The number of households with two or more cars is steadily increasing over time. The reason is that ownership of a single car imposes restrictions on car use when there are multiple license holders in a household. If such restrictions are severe, the benefits of multiple-car ownership may exceed the additional costs involved. In this paper, we develop a model that is based on the idea that limited substitutability between car use of different drivers is the driving force behind multiple-car ownership. We formulate a model structure in which households can own and use multiple cars. This approach is used to generalize an existing model for ownership and use of a single car two multiple car ownership and use. The extended model is estimated on Dutch data concerning households with one or two cars. An application to the effects of shifting the burden of car taxes from fixed to variable costs is provided.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-085/3.

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Date of creation: 16 Aug 2004
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Handle: RePEc:dgr:uvatin:20040085

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Find related papers by JEL classification:
R41 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-10-21 (All new papers)
NEP-GEO-2004-10-21 (Economic Geography)

References listed on IDEAS
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.:

Rouwendal, Jan & de Vries, Frans, 1999. "The taxation of drivers and the choice of car fuel type," Energy Economics, Elsevier, vol. 21(1), pages 17-35, February. [Downloadable!] (restricted)
Fred Mannering & Clifford Winston, 1985. "A Dynamic Empirical Analysis of Household Vehicle Ownership and Utilization," RAND Journal of Economics, The RAND Corporation, vol. 16(2), pages 215-236, Summer. [Downloadable!] (restricted)
Neary, J. P. & Roberts, K. W. S., 1980. "The theory of household behaviour under rationing," European Economic Review, Elsevier, vol. 13(1), pages 25-42, January. [Downloadable!] (restricted)

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