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Income and taste in mode choice models: Are they surrogates?

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  • Jara-Díaz, Sergio R.

Abstract

The microeconomic foundations of mode choice models postulate modal utilities which are additive in income; this actually makes choice independent of this variable. On the other hand, it has been argued that income is correlated with variables that reflect taste and therefore, has a place in the utility specification as a proxi for taste. In this paper we propose a framework based on a generalization of our expenditure rate approach in order to explore the presumptive relation between income and taste empirically. We use data from Santiago, Chile, and the results suggest that the use of income may not be adequate to identify taste differences.

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  • Jara-Díaz, Sergio R., 1991. "Income and taste in mode choice models: Are they surrogates?," Transportation Research Part B: Methodological, Elsevier, vol. 25(5), pages 341-350, October.
  • Handle: RePEc:eee:transb:v:25:y:1991:i:5:p:341-350
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    Cited by:

    1. Gang Liu, 2006. "A Behavioral Model of Work-trip Mode Choice in Shanghai," Discussion Papers 444, Statistics Norway, Research Department.
    2. Sobolewski, Maciej & Kopczewski, Tomasz, 2017. "Estimating demand for fixed-line telecommunication bundles," Telecommunications Policy, Elsevier, vol. 41(4), pages 227-241.
    3. Liu, Gang, 2007. "A behavioral model of work-trip mode choice in Shanghai," China Economic Review, Elsevier, vol. 18(4), pages 456-476.

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