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 on a large, high quality data set. When background variables are not included in the model it is found that the right 13% tail of the distribution is not observed and hence the mean VTTS cannot be evaluated. This conclusion changes when background variables are introduced into a semiparametric model. A partially constrained Johnson SB distribution allowing evaluation of the mean VTTS is accepted against the nonparametric alternative and is preferred among 16 candidates for parametric VTTS distributions. The resulting mean VTTS is plausible but three times larger than the mean VTTS evaluated from a simple logit model and half as big as that arising from a model assuming a lognormal distribution for the VTTS. Such findings indicate the importance of properly accounting for the distribution when estimating the mean VTTS. The present findings may be used to guide the choice of mixing distribution in a mixed logit model.
|Date of creation:||25 Nov 2004|
|Date of revision:|
|Note:||Type of Document - pdf; pages: 37. Replaces earlier paper: Nonparametric and semiparametric estimation of the distribution of the value of travel time savings|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
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.:
- 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.
- David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
- 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 & 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.
- 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.
- 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.
- Mogens Fosgerau, 2005. "Unit income elasticity of the value of travel time savings," Urban/Regional 0508007, EconWPA.
- Train,Kenneth E., 2009.
"Discrete Choice Methods with Simulation,"
Cambridge University Press, number 9780521747387.
- David A. Hensher, 2001. "Measurement of the Valuation of Travel Time Savings," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 35(1), pages 71-98, January.
- Walter Beckert, 2007. "Specification and Identification of Stochastic Demand Models," Econometric Reviews, Taylor & Francis Journals, vol. 26(6), pages 669-683.
- 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.
- 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.
- 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.
- Lars Hultkrantz & Reza Mortazavi, 2001. "Anomalies in the Value of Travel-Time Changes," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 35(2), pages 285-299, May.
- 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.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpur:0411006. 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: (EconWPA)
If references are entirely missing, you can add them using this form.