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Heterogeneity and State Dependence in Household Car Ownership: A Panel Analysis Using Ordered-Response Probit Models with Error Components

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  • Kitamura, Ryuichi
  • Bunch, David S.

Abstract

Dynamic, disaggregate choice models which use longitudinal data are known to have clear advantages over cross-sectional models, but they also have their own unique estimation problems. The correlation among unobserved error components ("heterogeneity") that is likely to exist in such data sets can be the source of apparent state dependence, but true state dependence is also possible. A review of car ownership models reveals that the issue of heterogeneity versus true state dependence has not been adequately addressed in the transportation literature. This paper develops computationally convenient ordered-response probit models for panel data, estimates models of car ownership, and performs tests of heterogeneity versus true state dependence. Conclusions in (the more general) one-factor models are found to differ from those obtained from (the more restricted) components of variance models, and the issue of initial conditions is also found to affect the conclusions.

Suggested Citation

  • Kitamura, Ryuichi & Bunch, David S., 1990. "Heterogeneity and State Dependence in Household Car Ownership: A Panel Analysis Using Ordered-Response Probit Models with Error Components," University of California Transportation Center, Working Papers qt0qv4q55r, University of California Transportation Center.
  • Handle: RePEc:cdl:uctcwp:qt0qv4q55r
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Cinzia Cirillo & Kay Axhausen, 2010. "Dynamic model of activity-type choice and scheduling," Transportation, Springer, vol. 37(1), pages 15-38, January.
    2. Matas, Anna & Raymond, Josep-LLuis, 2008. "Changes in the structure of car ownership in Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 187-202, January.
    3. Pyddoke, Roger & Creutzer, Christopher, 2014. "Household car ownership in urban and rural areas in Sweden 1999–2008," Working papers in Transport Economics 2014:21, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. Gerard Jong & Ryuichi Kitamura, 2009. "A review of household dynamic vehicle ownership models: holdings models versus transactions models," Transportation, Springer, vol. 36(6), pages 733-743, November.
    5. Yamamoto, Toshiyuki & Kitamura, Ryuichi, 2000. "An analysis of household vehicle holding durations considering intended holding durations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(5), pages 339-351, June.
    6. Dargay, Joyce M, 2001. "The effect of income on car ownership: evidence of asymmetry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(9), pages 807-821, November.
    7. Matas, Anna & Raymond, José-Luis & Roig, José-Luis, 2009. "Car ownership and access to jobs in Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(6), pages 607-617, July.
    8. Satoshi Fujii & Ryuichi Kitamura, 2009. "Analysis of personal action space using a model system with multiple choice structures," Transportation, Springer, vol. 36(6), pages 763-778, November.
    9. Dargay, Joyce & Hanly, Mark, 2007. "Volatility of car ownership, commuting mode and time in the UK," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(10), pages 934-948, December.
    10. Kitamura, Ryuichi, 1990. "Panel Analysis in Transportation Planning: An Overview," University of California Transportation Center, Working Papers qt86v0f7zh, University of California Transportation Center.

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    Keywords

    Social and Behavioral Sciences;

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