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A discrete-continuous model of households' vehicle choice and usage, with an application to the effects of residential density

  • Fang, Hao Audrey
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    This paper develops a new method to solve multivariate discrete-continuous problems and applies the model to measure the influence of residential density on households' vehicle fuel efficiency and usage choices. Traditional discrete-continuous modelling of vehicle holding choice and vehicle usage becomes unwieldy with large numbers of vehicles and vehicle categories. I propose a more flexible method of modelling vehicle holdings in terms of number of vehicles in each category, using a Bayesian multivariate ordinal response system. I also combine the multivariate ordered equations with Tobit equations to jointly estimate vehicle type/usage demand in a reduced form, offering a simpler alternative to the traditional discrete/continuous analysis. Using the 2001 National Household Travel Survey data, I find that increasing residential density reduces households' truck holdings and utilization in a statistically significant but economically insignificant way. The results are broadly consistent with those from a model derived from random utility maximization. The method developed above can be applied to other discrete-continuous problems.

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    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 42 (2008)
    Issue (Month): 9 (November)
    Pages: 736-758

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    Handle: RePEc:eee:transb:v:42:y:2008:i:9:p:736-758
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    15. Dale J. Poirier, 1995. "Intermediate Statistics and Econometrics: A Comparative Approach," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161494, June.
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