01520068

Component

This paper proposes a stochastic frontier modeling approach to estimate budgets for the multiple discrete-continuous extreme value (MDCEV) model. The approach is useful when the underlying time and/or money budgets driving a choice situation are unobserved, but only the expenditures on the choice alternatives of interest are observed. Most MDCEV applications hitherto used the observed total expenditure on the choice alternatives as the budget to model expenditure allocation among different choice alternatives. This does not allow the possibility that changes in alternative attributes (such as prices) can lead to changes in total expenditure, but only allows a reallocation of the observed total expenditure among the different alternatives. The stochastic frontier approach helps address this issue by invoking the notion that consumers operate under latent budgets that can be conceived (and modeled) as the maximum possible expenditure they are willing to incur. The proposed method is applied to analyze the daily out-of-home activity participation and time-use patterns in a survey sample of non-working adults in Florida. First, a stochastic frontier regression is performed on the observed out-of-home activity time expenditure to estimate the unobserved out-of-home activity time frontier (OH-ATF). The estimated frontier is interpreted as a subjective limit or maximum possible time individuals can allocate to out-of-home activities and used as the time budget governing out-of-home time-use choices in an MDCEV model. Policy simulations demonstrate the value of the proposed method in allowing the total out-of-home activity time expenditure to either expand or shrink within the limit of the frontier implied by the stochastic frontier model. Substantive results suggest that land-use impacts on time-use choices are smaller than demographic impacts.

This paper was sponsored by TRB committee ADB10 Traveler Behavior and Values.

01503729

14-4966

English

19p

2014

Transportation Research Board 93rd Annual Meeting

Digital/other

Appendices; Figures; References; Tables

Activity choices; Budgeting; Case studies; Estimating; Land use; Stochastic processes; Unemployed

Kuhn-Tucker demand models

Florida

Highways; Planning and Forecasting; I72: Traffic and Transport Planning

Transportation Research Board Annual Meeting 2014 Paper #14-4966

TRIS, TRB, ATRI

Jan 27 2014 3:45PM