Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Multiple Discrete-Continuous Extreme Value Model (MDCEV) with fixed costs

Contents:

Author Info

  • Tanner, Reto
  • Bolduc, Denis

Abstract

In this paper, we present a model that can be viewed as an extension of the traditional Tobit model. As opposed to that specific model, ours also accounts for the the fixed costs of car ownership. That extension is needed since being carless is an option for many households in societies that have a good system of public transportation, the main reason being that carless households wish to save the fixed costs of car ownership. So far, no existing model can adequately map the impact of these fixed costs on car ownership. The Multiple Discrete-Continuous Extreme Value Model (MDCEV) with fixed costs fills this gap. In fact, this model can evaluate the effect of policies intended to influence household behaviour with respect to car ownership, which can be of great interest to policy makers. Our model makes it possible to compute the effect of policies such as taxes on fuel or on car ownership on both the share of carless households and the average driving distance. We calibrated the model using data on Swiss private households in order to forecast were then able to forecast responses to policies. One result of particular interest that cannot be produced by other models is the evaluation of the impact of a tax on car ownership. Our results show that a tax on car ownership has a much lower impact on aggregate driving demand – per unit of tax revenues – than a tax on fuel.

Download Info

If 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.
File URL: http://mpra.ub.uni-muenchen.de/41452/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41452.

as in new window
Length:
Date of creation: 23 Jul 2012
Date of revision:
Handle: RePEc:pra:mprapa:41452

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: The Multiple Discrete-Continuous Extreme Value Model (MDCEV); fixed costs; fuel consumption; carbon dioxide; emissions;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:41452. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.