International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss


Household Planning of Transportation Use
Shuyi Jiang

In this paper, I examine the household demand for travel by mode of transportation. I use a mixed logit model model to incorporate heterogeneity considerations. I estimate the mixed logit model by introducing two random coefficients based on a maximum simulated likelihood function. The demand framework used in this study is a class of differentiated product demand models, which describe bundles of product characteristics. I estimate travel demand, taking into account the demand for activity participation and interactions among household members using a differentiated product demand model. In this framework, individuals choose the travel alternatives to maximize their utility derived from the socio-demographic characteristics and the attributes of each alternative, following Berry, Levinsohn, and Pakes (1995). Empirical results demonstrate that individual and household socio-demographics are important and strong factors affecting individual choice of transportation. Work-related trip increases the use of private vehicle by 5.12%. School-related trip decreases the use of private vehicle by 3.35%. Senior citizens use private vehicle more often than public transportation. They increase the private vehicle use by 6.25%.

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