Investigating the distribution of the value of travel time savings
The distribution of the value of travel time savings (VTTS) is investigated employing various nonparametric techniques to a large dataset originating from a stated choice experiment. The data contain choices between a fast and more expensive alternative and a slow and less expensive alternative. Increasing the implicit price of time leads to an increased share of respondents who decline to pay to save time. But a significant proportion of respondents, 13%, remain willing to pay to save time at the highest price of time in the design. This means that the right tail of the VTTS distribution is not observed and hence the mean VTTS cannot be evaluated without additional assumptions. When socio-economic and situational variables are introduced into a semiparametric model it becomes possible to accept that the whole VTTS distribution is observed. Sixteen candidates for parametric VTTS distributions are investigated. Some distributions are simply not able to fit to the empirical distribution while others have very long tails. The mean VTTS is shown to be extremely dependent on the choice of parametric distribution. Requiring that the parametric distribution should be accepted against the nonparametric alternative narrows the field down to five candidates. One of the distributions tested here has also support within the observed range such that the estimated VTTS is bounded by the data.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 40 (2006)
Issue (Month): 8 (September)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
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.:
- Ruud H. Koning & Geert Ridder, 2003.
"Discrete choice and stochastic utility maximization,"
Royal Economic Society, vol. 6(1), pages 1-27, 06.
- Ruud H Koning & Geert Ridder, 1999. "Discrete Choice and Stochastic Utility Maximization," Economics Working Paper Archive 413, The Johns Hopkins University,Department of Economics.
- Walter Beckert, 2007. "Specification and Identification of Stochastic Demand Models," Econometric Reviews, Taylor & Francis Journals, vol. 26(6), pages 669-683.
- Train,Kenneth E., 2009.
"Discrete Choice Methods with Simulation,"
Cambridge University Press, number 9780521747387, December.
- David A. Hensher, 2001. "Measurement of the Valuation of Travel Time Savings," Journal of Transport Economics and Policy, University of Bath, vol. 35(1), pages 71-98, January.
- Yatchew,Adonis, 2003.
"Semiparametric Regression for the Applied Econometrician,"
Cambridge University Press, number 9780521812832, December.
- Yatchew,Adonis, 2003. "Semiparametric Regression for the Applied Econometrician," Cambridge Books, Cambridge University Press, number 9780521012263, December.
- Hess, Stephane & Bierlaire, Michel & Polak, John W., 2005. "Estimation of value of travel-time savings using mixed logit models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(2-3), pages 221-236.
- Arthur Lewbel & Oliver Linton & D. L. McFadden, 2006.
"Estimating features of a distribution from binomial data,"
LSE Research Online Documents on Economics
4418, London School of Economics and Political Science, LSE Library.
- Lewbel, Arthur & McFadden, Daniel & Linton, Oliver, 2011. "Estimating features of a distribution from binomial data," Journal of Econometrics, Elsevier, vol. 162(2), pages 170-188, June.
- Arthur Lewbel & Daniel McFadden & Oliver Linton, 1997. "Estimating Features of a Distribution from Binomial Data," Boston College Working Papers in Economics 442, Boston College Department of Economics, revised 01 Jul 2010.
- Arthur Lewbel & Oliver Linton & Daniel McFadden, 2001. "Estimating features of a distribution from binomial data," CeMMAP working papers CWP07/01, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Pagan,Adrian & Ullah,Aman, 1999.
Cambridge University Press, number 9780521355643, December.
- David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
- Klein, R.W. & Spady, R.H., 1991.
"An Efficient Semiparametric Estimator for Binary Response Models,"
70, Bell Communications - Economic Research Group.
- Klein, Roger W & Spady, Richard H, 1993. "An Efficient Semiparametric Estimator for Binary Response Models," Econometrica, Econometric Society, vol. 61(2), pages 387-421, March.
- Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
- John Xu Zheng, 1996. "A consistent test of functional form via nonparametric estimation techniques," Journal of Econometrics, Elsevier, vol. 75(2), pages 263-289, December.
- Hensher, David A. & Goodwin, Phil, 2004. "Using values of travel time savings for toll roads: avoiding some common errors," Transport Policy, Elsevier, vol. 11(2), pages 171-181, April.
- Lars Hultkrantz & Reza Mortazavi, 2001. "Anomalies in the Value of Travel-Time Changes," Journal of Transport Economics and Policy, University of Bath, vol. 35(2), pages 285-299, May.
- Mogens Fosgerau, 2005. "Unit income elasticity of the value of travel time savings," Urban/Regional 0508007, EconWPA.
- Lee, Lung-fei, 1995. "Semiparametric maximum likelihood estimation of polychotomous and sequential choice models," Journal of Econometrics, Elsevier, vol. 65(2), pages 381-428, February.
When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:40:y:2006:i:8:p:688-707. 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: (Dana Niculescu)
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.