Stochastic frontier estimation of budgets for Kuhn–Tucker demand systems: Application to activity time-use analysis

We propose a stochastic frontier 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 the expenditures on the choice alternatives of interest are observed. Several MDCEV applications hitherto used the observed total expenditure on the choice alternatives as the budget to model expenditure allocation among choice alternatives. This does not allow for increases or decreases in the total expenditure due to changes in choice alternative-specific attributes, but only allows a reallocation of the observed total expenditure among 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 (OH-ATE) 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. The efficacy of this approach is compared with other approaches for estimating time budgets for the MDCEV model, including: (a) a log-linear regression on the total observed expenditure for out-of-home activities and (b) arbitrarily assumed, constant time budgets for all individuals in the sample. A comparison of predictive accuracy in time-use patterns suggests that the stochastic frontier and log-linear regression approaches perform better than arbitrary assumptions on time budgets. Between the stochastic frontier and log-linear regression approaches, the former results in slightly better predictions of activity participation rates while the latter results in slightly better predictions of activity durations. A comparison of policy simulations demonstrates that the stochastic frontier approach allows for the total out-of-home activity time expenditure to either expand or shrink due to changes in alternative-specific attributes. The log-linear regression approach allows for changes in total time expenditure due to changes in decision-maker attributes, but not due to changes in alternative-specific attributes.     

Alternative Modeling Approaches Used for Examining Automobile Ownership: A Comprehensive Review

Abstract

Household vehicle ownership, and the associated dimensions including fleet size, vehicle type and usage, has been one of the most researched transport topics. This paper endeavors to provide a critical overview of the wide-ranging methodological approaches employed in vehicle ownership modeling depending on the ownership representation over the past two decades. The studies in the existing literature based on the vehicle ownership representation are classified as: exogenous static, exogenous dynamic, endogenous static and endogenous dynamic models. The methodological approaches applied range from simple linear regressions to complex econometrics formulations taking into account a rich set of covariates. In spite of the steady advancement and impressive evolution in terms of methodological approaches to examine the decision process, we identify complex issues that pose a formidable challenge to address the evolution of vehicle ownership in the coming years. Specifically, we discuss challenges with data availability and methodological framework selection. In light of these discussions, we provide a decision matrix for aiding researchers/practitioners in determining appropriate model frameworks for conducting vehicle ownership analysis.     

An analysis of the social context of children’s weekend discretionary activity participation

This paper examines the discretionary time-use of children, including the social context of children’s participations. Specifically, the paper examines participation and time investment in in-home leisure as well as five different types of out-of-home discretionary activities: (1) shopping, (2) social, (3) meals, (4) passive recreation (i.e., physically inactive recreation, such as going to the movies or a concert), and (5) active recreation (i.e., physically active recreation, such as playing tennis or running). The social context of children’s activity participation is also examined by focusing on the accompanying individuals in children’s activity engagement. The accompanying arrangement is classified into one of six categories: (1) alone, (2) with mother and no one else, (3) with father and no one else, (4) with both mother and father, and no one else, (5) with other individuals, but no parents, and (6) with other individuals and one or both parents. The utility-theoretic Multiple Discrete-Continuous Extreme Value (MDCEV) is employed to model time-use in one or more activity purpose–company type combinations. The data used in the analysis is drawn from the 2002 Child Development Supplement (CDS) to the U.S. Panel Study Income Dynamics (PSID). The results from the model can be used to examine the time-use choices of children, as well as to assess the potential impacts of urban and societal policies on children’s activity participation and time-use decisions. Our findings also emphasize the need to collect, in future travel surveys, more extensive and higher quality data capturing the intra- and inter-household interactions between individuals (including children). To our knowledge, the research in this paper is the first transportation-related study to rigorously and comprehensively analyze the social dimension of children’s activity participation.