IDEAS home Printed from https://ideas.repec.org/a/eee/eejocm/v54y2025ics1755534524000691.html
   My bibliography  Save this article

Control Function Approach for Addressing Endogeneity in Transport Models: A Case Study on the London–Amsterdam Route

Author

Listed:
  • Guerrero B., Thomas E.
  • Avogadro, Nicolò
  • Ramos, Raúl

Abstract

Endogeneity is a key empirical challenge in transportation modeling, which may lead to inconsistent estimates and biased policy decisions. This paper investigates the sources of endogeneity and focuses on tackling this issue for a discrete choice model analyzing the multimodal London–Amsterdam route, where air transport and high-speed rail (HSR) compete. Contrary to previous literature, we found no evidence of endogeneity in service frequency for the London–Amsterdam market. This could be attributed to market-specific features, such as feeding considerations, slot retention dynamics, and the congestion of the HSR network, which constrains capacity expansion opportunities. Conversely, we observed that fare introduced endogeneity into the model. To address this issue, we applied the control function approach and proposed two novel instruments: the fare for similar markets and the price of power sources. These instruments proved to be effective in correcting for endogeneity by increasing model performance. We also discuss the adverse impact of neglecting endogeneity and estimate price and frequency elasticities, ultimately demonstrating the significance of dealing with endogeneity in ensuring the reliability of results in transportation studies and appropriately informing policy decisions.

Suggested Citation

  • Guerrero B., Thomas E. & Avogadro, Nicolò & Ramos, Raúl, 2025. "Control Function Approach for Addressing Endogeneity in Transport Models: A Case Study on the London–Amsterdam Route," Journal of choice modelling, Elsevier, vol. 54(C).
  • Handle: RePEc:eee:eejocm:v:54:y:2025:i:c:s1755534524000691
    DOI: 10.1016/j.jocm.2024.100537
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1755534524000691
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jocm.2024.100537?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eejocm:v:54:y:2025:i:c:s1755534524000691. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-choice-modelling .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.