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A Microeconomic Theory–Based Latent Class Multiple Discrete–Continuous Choice Model of Time Use and Goods Consumption

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  • Astroza, Sebastian
  • Pinjari, Abdul
  • Bhat, Chandra
  • Jara-Diaz, Sergio

Abstract

A microeconomic theory–based multiple discrete–continuous choice model was developed to accommodate (a) both time allocation and goods consumption as decision variables in the utility function, (b) both time and money budget constraints governing the activity participation and goods consumption decisions, (c) a finite probability of zero consumption and zero time allocation (i.e., corner solutions), and (d) technical constraints in the form of minimum consumption levels for any good that would be consumed and minimum time allocation for any activity conducted. The proposed model was applied in the form of a latent class model (to consider heterogeneity) on a Dutch data set to understand the determinants of weekly time use and goods consumption behavior.

Suggested Citation

  • Astroza, Sebastian & Pinjari, Abdul & Bhat, Chandra & Jara-Diaz, Sergio, 2017. "A Microeconomic Theory–Based Latent Class Multiple Discrete–Continuous Choice Model of Time Use and Goods Consumption," MPRA Paper 92574, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92574
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    File URL: https://mpra.ub.uni-muenchen.de/92574/1/MPRA_paper_92574.pdf
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    References listed on IDEAS

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    1. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2012. "Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information," American Economic Review, American Economic Association, vol. 102(7), pages 3377-3405, December.
    2. Caleb Van Nostrand & Vijayaraghavan Sivaraman & Abdul Pinjari, 2013. "Analysis of long-distance vacation travel demand in the United States: a multiple discrete–continuous choice framework," Transportation, Springer, vol. 40(1), pages 151-171, January.
    3. Evans, Alan W, 1972. "On the Theory of the Valuation and Allocation of Time," Scottish Journal of Political Economy, Scottish Economic Society, vol. 19(1), pages 1-17, February.
    4. Takuya Satomura & Jaehwan Kim & Greg M. Allenby, 2011. "Multiple-Constraint Choice Models with Corner and Interior Solutions," Marketing Science, INFORMS, vol. 30(3), pages 481-490, 05-06.
    5. Jara-Díaz, Sergio R. & Astroza, Sebastian & Bhat, Chandra R. & Castro, Marisol, 2016. "Introducing relations between activities and goods consumption in microeconomic time use models," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 162-180.
    6. Sergio R. Jara-Diaz & Cristián A. Guevara, 2003. "Behind the Subjective Value of Travel Time Savings," Journal of Transport Economics and Policy, University of Bath, vol. 37(1), pages 29-46, January.
    7. Bhat, Chandra R., 2008. "The multiple discrete-continuous extreme value (MDCEV) model: Role of utility function parameters, identification considerations, and model extensions," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 274-303, March.
    8. Jara-Díaz, Sergio R. & Munizaga, Marcela A. & Greeven, Paulina & Guerra, Reinaldo & Axhausen, Kay, 2008. "Estimating the value of leisure from a time allocation model," Transportation Research Part B: Methodological, Elsevier, vol. 42(10), pages 946-957, December.
    9. Chandra R. Bhat, 1997. "An Endogenous Segmentation Mode Choice Model with an Application to Intercity Travel," Transportation Science, INFORMS, vol. 31(1), pages 34-48, February.
    10. Castro, Marisol & Bhat, Chandra R. & Pendyala, Ram M. & Jara-Díaz, Sergio R., 2012. "Accommodating multiple constraints in the multiple discrete–continuous extreme value (MDCEV) choice model," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 729-743.
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    Cited by:

    1. Pellegrini, Andrea & Pinjari, Abdul Rawoof & Maggi, Rico, 2021. "A multiple discrete continuous model of time use that accommodates non-additively separable utility functions along with time and monetary budget constraints," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 37-53.
    2. Jason Hawkins & Khandker Nurul Habib, 2023. "A multi-source data fusion framework for joint population, expenditure, and time use synthesis," Transportation, Springer, vol. 50(4), pages 1323-1346, August.
    3. Bhat, Chandra R. & Mondal, Aupal & Pinjari, Abdul Rawoof & Saxena, Shobhit & Pendyala, Ram M., 2022. "A multiple discrete continuous extreme value choice (MDCEV) model with a linear utility profile for the outside good recognizing positive consumption constraints," Transportation Research Part B: Methodological, Elsevier, vol. 156(C), pages 28-49.
    4. Kim, Sung Hoo & Mokhtarian, Patricia L., 2023. "Finite mixture (or latent class) modeling in transportation: Trends, usage, potential, and future directions," Transportation Research Part B: Methodological, Elsevier, vol. 172(C), pages 134-173.
    5. Mondal, Aupal & Bhat, Chandra R., 2021. "A new closed form multiple discrete-continuous extreme value (MDCEV) choice model with multiple linear constraints," Transportation Research Part B: Methodological, Elsevier, vol. 147(C), pages 42-66.

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    More about this item

    Keywords

    Time use; multiple-discrete-continuous-choice;

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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