Paper Details

TRB 91st Annual Meeting (January 22-26, 2012)

Event Number:	711
Event Title:	Innovations in Activity and Travel Behavior
Event Date:	Jan 25 2012 8:30AM- 10:15AM
Event Location:	Hilton, International Center
Event Description:
Event Agenda:

Accommodating Multiple Constraints in Multiple-Discrete Continuous Extreme Value Choice Model (12-3583)

In this paper, we extend the multiple-discrete continuous extreme value (MDCEV) model to accommodate multiple constraints. The formulation uses a flexible and general utility function form, and is applicable to the case of inside goods only or inside and outside goods. The proposed MC-MDCEV model is applied to time-use decisions, where individuals are assumed to maximize their utility from time-use in one or more activities subject to monetary and time availability constraints. The sample for the empirical exercise is generated by combining time-use information from the 2008 American Time Use Survey and expenditure records from the 2008 U.S. Consumer Expenditure Survey. The estimation results show that preferences can get severely mis-estimated when only a time constraint is used and the monetary constraint is ignored. Further, there is a substantial improvement in data fit when both money and time constraints are held active, relative to the case when only a time constraint is maintained.

Authors
     Castro, Marisol , University of Texas, Austin
     Bhat, Chandra R., University of Texas, Austin
     Pendyala, Ram M., Arizona State University
     Jara-Diaz, Sergio , Universidad de Chile