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Simultaneous modeling of individuals’ duration and expenditure decisions in out-of-home leisure activities


  • Dane, Gamze
  • Arentze, Theo A.
  • Timmermans, Harry J.P.
  • Ettema, Dick


In this paper, we propose an activity model under time and budget constraints to simultaneously predict the allocation of time and money to out-of-home leisure activities. The proposed framework considers the activity episode level, given that the activity is scheduled. Thus, the model considers the decision of the quantities for duration and expenditure spent during the activity. We use a flexible utility function and show how the simultaneous equations can be estimated by using structural equations model (SEM) estimation techniques to handle the endogeneity problem of time and expenditure. The estimation results are based on a large national leisure diary data set collected in 2008 in the Netherlands, which provides detailed information about time and money spent as well as timing and location attributes of the activities. The analysis reveals that socio-demographics, travel party, timing and location variables influence the duration and expenditure of activity episodes. It shows that various socio-demographic groups display different preferences in terms of the time and money spent on activities. The results also indicate substitution relationships between spending more time and money for various activity categories. Thus it is concluded that the analysis provides useful results for a better understanding of combined time and money allocation decisions for leisure activities.

Suggested Citation

  • Dane, Gamze & Arentze, Theo A. & Timmermans, Harry J.P. & Ettema, Dick, 2014. "Simultaneous modeling of individuals’ duration and expenditure decisions in out-of-home leisure activities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 93-103.
  • Handle: RePEc:eee:transa:v:70:y:2014:i:c:p:93-103
    DOI: 10.1016/j.tra.2014.10.003

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    References listed on IDEAS

    1. Chandra Bhat & Rajul Misra, 1999. "Discretionary activity time allocation of individuals between in-home and out-of-home and between weekdays and weekends," Transportation, Springer, vol. 26(2), pages 193-229, May.
    2. Bhat, Chandra R., 2005. "A multiple discrete-continuous extreme value model: formulation and application to discretionary time-use decisions," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 679-707, September.
    3. Arentze, Theo A. & Timmermans, Harry J.P., 2009. "A need-based model of multi-day, multi-person activity generation," Transportation Research Part B: Methodological, Elsevier, vol. 43(2), pages 251-265, February.
    4. Kockelman, Kara Maria, 2001. "A model for time- and budget-constrained activity demand analysis," Transportation Research Part B: Methodological, Elsevier, vol. 35(3), pages 255-269, March.
    5. Khandker Habib, 2011. "A random utility maximization (RUM) based dynamic activity scheduling model: Application in weekend activity scheduling," Transportation, Springer, vol. 38(1), pages 123-151, January.
    6. Jara-Díaz, Sergio R. & Munizaga, Marcela A. & Greeven, Paulina & Guerra, Reinaldo & Axhausen, Kay, 2008. "Estimating the value of leisure from a time allocation model," Transportation Research Part B: Methodological, Elsevier, vol. 42(10), pages 946-957, December.
    7. Kitamura, Ryuichi, 1984. "A model of daily time allocation to discretionary out-of-home activities and trips," Transportation Research Part B: Methodological, Elsevier, vol. 18(3), pages 255-266, June.
    8. Evans, Alan W, 1972. "On the Theory of the Valuation and Allocation of Time," Scottish Journal of Political Economy, Scottish Economic Society, vol. 19(1), pages 1-17, February.
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    Cited by:

    1. Jara-Díaz, Sergio R. & Astroza, Sebastian & Bhat, Chandra R. & Castro, Marisol, 2016. "Introducing relations between activities and goods consumption in microeconomic time use models," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 162-180.
    2. repec:eee:transa:v:116:y:2018:i:c:p:220-231 is not listed on IDEAS


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