Individual-level decomposition of the value of travel time savings into the value of leisure and the value of time assigned to travel (original) (raw)
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Regional Science and Urban Economics, 1981
In the last ten years, discretechoice modelling using techniques of multinomial logit and multinomial ptobit, have been increasingly used in a wide range of applications. One area of recent interst is the functional form of the representative component of the preference function. In this paper we draw together a number of approaches used to investigate alternative functional form, and then develop in some detail one procedure-known as the Box-Tukey statistical search approached. While this is not a substitute for direct behavioural specification, it does provide a useful complementary basis for identifying the sensitivity of key policy parameters (e.g., elasticities) to varying functional form. The empirical illustration is drawn from analysis of a mode choice data set.
A Nonparametric Test of the Traditional Travel Cost Model
Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 1996
The traditional travel cost model operates on the assumption that choices are made regarding the number of trips to various sites over an entire recreation season. This paper uses actual recreation data to test the consistency of this model with postulates of rational economic choice as embodied in the axioms of revealed preference. The paper assumes consumer rationality and examines the effects of alternative trip prices and model structures on the degree of consistency between them and the axioms of choice. Using tests developed by Varian and Tsur, the authors find that site choices at prices proxied by travel costs for most individuals in the sample violate the axioms. The violations are quite large when time costs, both in traveling and on-site, are omittedfrom the prices. When they are included, violations are almost as numerous, but not as large. The paper also examines demand heterogeneity by strattfiing the sample and repeating the nonparametric tests. These findings suggest caution be used in interpreting welfare measures derivedfrom traditional travel cost models, especially those that do not include measures of time value. The authors' approach provides a method for screening travel cost data and preparing for model selection and estimation. Le modele des cotits de deplacement classique s 'appuie sur 1 'hypothbe selon laquelle il y a des choix a faire relativement au nombre de voyages menant a divers emplacements au tours d'une saison de loisirs. Nous utilisons des don&es reelles de loisirs pour tester la coherence du modele au moyen de postulats de choix economique rationnel incorpores dans les axiomes des preferences revekes. Prenant comme acquis la rationalite du comportement du consommateur, nous examinons les effets de divers scenarios de prix des deplacements et de diverses structures de modele sur leur degre de coherence entre eux et les axiomes de choix. A partir des tests elabores par Varian et Tsur, nous constatons que, pour la plupart des personnes incluses dans notre echantillon, les choix d 'emplacement au prix calcule selon les cokts de voyage ne respectent pas les axiomes. Ces &arts sont assez importants lorsque les co&s en temps, trajet et sejour compris, ne sont pas inclus dans les prix. Quand les cotits en temps sont compris dans le prix, les &arts sont presque aussi nombreus, mais ils ne sont pas aussi importants. Nous examinons egalement 1 'heterogeneite de la demande en rep&ant cette fois les tests sur le meme echantillon stratifie. Ces constatations invitent a la prudence dans 1 'interpretation des mesures sociales derivees des modeles des cotits de deplacement classiques, en particulier ceux qui ne tiennent pas compte de la valeur du temps. La demarche que nous proposons est un moyen de trier les donnkes sur les cotits de deplacement et de preparer le chotk et 1 'evaluation du modele.
The Individual Travel Cost Method with Consumer-Specific Values of Travel Time Savings
Environmental and Resource Economics, 2019
The treatment of the opportunity cost of travel time in travel cost models has been an area of research interest for many decades. Our analysis develops a methodology to combine the travel distance and travel time data with respondent-specific estimates of the value of travel time savings (VTTS). The individual VTTS are elicited with the use of discrete choice stated preference methods. The travel time valuation procedure is integrated into the travel cost valuation exercise to create a two-equation structural model of site valuation. Since the travel time equation of the structural model incorporates individual preference heterogeneity, the full structure model provides a travel cost site demand model based upon individualized values of time. The methodology is illustrated in a study of recreational birdwatching, more specifically, visits to a 'stork village' in Poland. We show that the usual practice of basing respondents' VTTS on 1/3 of their wage rate is largely unfounded and propose alternatives-including a separate component of the travel cost survey aimed at valuation of respondents' VTTS or, as a second best, asking if they wish if their journey was shorter and for those who do-use full hourly wage as an indicator of their VTTS. Keywords Opportunity cost of travel time • Individual-specific values of travel time savings • Travel cost method • Discrete choice experiment • Integration of valuation methods • Recreational birdwatching JEL Classification Q26 • Q51 • Q57
Advances in Transportation Studies an international Journal, 2013
This paper examines how the value of travel time savings changes with the individual socioeconomic variables and the transportation system performance. The individuals' perception of the value of time depends on three key factors: age, sex, income. The Multinomial Logit model underestimates the value of travel time savings unlike the Multinomial Probit model and the MMNL model. In the case of discrete choice models allowing for random taste heterogeneity, a Mixed Multinomial logit (MMNL) is used to estimate the travel-time and the cost coefficients. We discuss the consistency of such estimates where we consider distributions with fixed bounds and unbounded distributions. In each case, we note that the MMNL overestimate the value of travel-time savings. To guarantee the robustness of estimation, it is preferable to use unbounded distributions, especially the Normal distribution (bounds are estimated from data during the calibration). In order to know the effect of the sample criteria on the result of the model fit, we divided the complete sample into many segments and we estimate an MMNL model for each one. Following the segments' criteria, we compare the advantage of a larger sample and the effect of the segmentation on the performance of the MMNL model. Keywords-value of travel time savings in Tunis, discrete choice models (MNL, MNP, MMNL), comparative statically analysis, sampling effect, MMNL model fit
Preference Heterogeneity and Willingness to Pay for Travel Time Savings
Transportation, 2005
We examined different model specifications to detect the presence of preference heterogeneity in a mode choice context. The specification that worked best allows for both systematic and random variations in tastes, with parameters obtained at the individual level using Bayesian methods. Subjective values of travel time (SVT) and expected individual compensated variation were derived and aggregated to obtain measures of social welfare. Results suggest that the benefit measures, both at the individual and at the social level, are sensitive to preference heterogeneity assumptions.
The study presented here makes use of Stated Preference (SP) data on mode choice collected as part of a recent survey on long distance travel undertaken in three European countries. The purpose of this article is twofold. It aims at exploring the impacts of the choice of probability distributions while accounting for unobserved taste heterogeneity and it aims at focusing on the derived estimation of the distributions of values of travel time savings (VTTS).
Transportation Research Part A: Policy and Practice, 2000
Transportation Research Part A: Policy and Practice
Being of great importance for transportation policy appraisals, we investigate mode and user-type effects in the value of travel time savings (VTTS) using a pooled RP/SP Mixed Logit modeling approach for mode, route and destination choice data. For a representative sample of Austrian workers, our analysis reveals population-weighted median VTTS estimates for car (12.3 Euro/h), public transportation (PT; 8.1 Euro/h), bike (11.7 Euro/h) and walk (10.2 Euro/h). Considering only those respondents who have used car and PT in the observation period (and thus are familiar with both modes), we find that four user characteristics are able to decompose this substantial difference in median VTTS between car and PT (i.e. the total mode effect) of about 4.9 Euro/h: Posterior means of individual and mode-specific VTTS distributions reveal a reduced mode effect for high income (4.6 Euro/h), female (4.5 Euro/h), low educated (4.3 Euro/h) and urban (3.0 Euro/h) user groups. Our results indicate that in the case of Austrian workers, characteristics of the mode are more important than characteristics of the users, and that the travel time spent in PT is valued less than in a car for all investigated user groups.
Behind the Subjective Value of Travel Time Savings
2003
Many travel choice models estimated throughout the world have been used to calculate the full value of travel time savings. Its components, however, have never been estimated quantitatively. This article takes into consideration the fact that travel (mode) choice and activity demand models come from a common microeconomic framework such that their specifications are linked. The authors show that estimating both types of models from the same population makes it possible to obtain all components of the subjective value of travel time savings empirically because the models share some common parameters. This novel approach is experimentally applied using information on travel choices and homework activities for two income groups collected in Santiago, Chile.
2017
1 The value of travel time is an important element of cost-benefit analysis for appraisal of trans2 portation project, by encapsulating the willingness to pay of the population for improvements 3 in the transport system. Those values are typically obtained from mobility choice data, in the 4 form of revealed or stated preference surveys. Although short term decisions, such as route and 5 mode choice, are typically used for this purpose, a growing number of authors is arguing that 6 long term decisions might provide more meaningful values for the evaluation of transportation 7 projects. 8 This paper uses the German Value of Time Study, that contains both short and long term 9 choice experiments, to investigate the impact of different time horizons on the valuation of time. 10 In particular, the availability in the dataset of two different long term experiments (residential 11 and workplace choice) allow to evaluate not only the impact of the time horizon, but of the type 12 of long t...