Using nonparametrics to specify a model to measure the value of travel time
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Using nonparametrics to specify a model to measure the value of travel time. / Fosgerau, Mogens.
In: Transportation Research Part A: Policy and Practice, Vol. 41, No. 9 SPEC. ISS., 11.2007, p. 842-856.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Using nonparametrics to specify a model to measure the value of travel time
AU - Fosgerau, Mogens
PY - 2007/11
Y1 - 2007/11
N2 - Using a range of nonparametric methods, the paper examines the specification of a model to evaluate the willingness-to-pay (WTP) for travel time changes from binomial choice data from a simple time-cost trading experiment. The analysis favours a model with random WTP as the only source of randomness over a model with fixed WTP which is linear in time and cost and has an additive random error term. Results further indicate that the distribution of log WTP can be described as a sum of a linear index fixing the location of the log WTP distribution and an independent random variable representing unobserved heterogeneity. This formulation is useful for parametric modelling. The index indicates that the WTP varies systematically with income and other individual characteristics. The WTP varies also with the time difference presented in the experiment which is in contradiction of standard utility theory.
AB - Using a range of nonparametric methods, the paper examines the specification of a model to evaluate the willingness-to-pay (WTP) for travel time changes from binomial choice data from a simple time-cost trading experiment. The analysis favours a model with random WTP as the only source of randomness over a model with fixed WTP which is linear in time and cost and has an additive random error term. Results further indicate that the distribution of log WTP can be described as a sum of a linear index fixing the location of the log WTP distribution and an independent random variable representing unobserved heterogeneity. This formulation is useful for parametric modelling. The index indicates that the WTP varies systematically with income and other individual characteristics. The WTP varies also with the time difference presented in the experiment which is in contradiction of standard utility theory.
KW - Local logit
KW - Nonparametric
KW - Semiparametric
KW - Value of time
KW - Willingness-to-pay
KW - WTP
UR - http://www.scopus.com/inward/record.url?scp=34547193653&partnerID=8YFLogxK
U2 - 10.1016/j.tra.2006.10.004
DO - 10.1016/j.tra.2006.10.004
M3 - Journal article
AN - SCOPUS:34547193653
VL - 41
SP - 842
EP - 856
JO - Transportation Research, Part A: Policy and Practice
JF - Transportation Research, Part A: Policy and Practice
SN - 0965-8564
IS - 9 SPEC. ISS.
ER -
ID: 181872930