Simulation, numerical approximation and closed forms for joint discrete continuous models with an application to household vehicle ownership and use

Simulation, numerical approximation and closed forms for joint discrete continuous models with an... Integrated models for multiple decision variables, not necessarily from the same family, are becoming possible thanks to the advances in econometrics and in the estimation techniques. Recently, probit type models have been proposed to model joint decisions for the flexibility offered by the multivariate normal to capture correlations across the different dependent variables. Ordered probit models are in general preferred to unordered probit for the saving in computational costs deriving from the closed mathematical form of the choice probabilities. In this study, we compare results obtained from unordered probit models estimated with simulation and numerical computation to those obtained from ordered discrete–continuous probit. The analysis is performed on household decisions concerning vehicle holding and mileage travelled and using data extracted from the 2009 National Household Travel Survey. Estimation results show that discrete–continuous unordered probit are superior to ordered structures in terms of goodness of fit, but produce comparable results when applied to predict behavioral changes. Model applications for policy analysis also reveal that income and density only affects marginally vehicle holding decisions and annual miles driven, while driving cost has a more significant effect on annual household mileage. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Transportation Springer Journals

Simulation, numerical approximation and closed forms for joint discrete continuous models with an application to household vehicle ownership and use

Loading next page...
 
/lp/springer_journal/simulation-numerical-approximation-and-closed-forms-for-joint-discrete-KnyFlbLbK2
Publisher
Springer US
Copyright
Copyright © 2016 by Springer Science+Business Media New York
Subject
Economics; Regional/Spatial Science; Economic Geography; Engineering Economics, Organization, Logistics, Marketing; Innovation/Technology Management
ISSN
0049-4488
eISSN
1572-9435
D.O.I.
10.1007/s11116-016-9696-4
Publisher site
See Article on Publisher Site

Abstract

Integrated models for multiple decision variables, not necessarily from the same family, are becoming possible thanks to the advances in econometrics and in the estimation techniques. Recently, probit type models have been proposed to model joint decisions for the flexibility offered by the multivariate normal to capture correlations across the different dependent variables. Ordered probit models are in general preferred to unordered probit for the saving in computational costs deriving from the closed mathematical form of the choice probabilities. In this study, we compare results obtained from unordered probit models estimated with simulation and numerical computation to those obtained from ordered discrete–continuous probit. The analysis is performed on household decisions concerning vehicle holding and mileage travelled and using data extracted from the 2009 National Household Travel Survey. Estimation results show that discrete–continuous unordered probit are superior to ordered structures in terms of goodness of fit, but produce comparable results when applied to predict behavioral changes. Model applications for policy analysis also reveal that income and density only affects marginally vehicle holding decisions and annual miles driven, while driving cost has a more significant effect on annual household mileage.

Journal

TransportationSpringer Journals

Published: Apr 26, 2016

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off