A dynamic random effects multinomial logit model of household car ownership
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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A dynamic random effects multinomial logit model of household car ownership. / Bue Bjørner, Thomas; Leth-Petersen, Søren.
I: Nationaløkonomisk tidsskrift, Bind 145, Nr. 1, 2007, s. 83-100.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - A dynamic random effects multinomial logit model of household car ownership
AU - Bue Bjørner, Thomas
AU - Leth-Petersen, Søren
N1 - JEL Classification: D12, L62
PY - 2007
Y1 - 2007
N2 - Using a large household panel we estimate demand for car ownership by means of a dynamic multinomial model with correlated random effects. Results suggest that the persistence in car ownership observed in the data should be attributed to both true state dependence and to unobserved heterogeneity (random effects). It also appears that random effects related to single and multiple car ownership are correlated, suggesting that the IIA assumption employed in simple multinomial models of car ownership is invalid. Relatively small elasticities with respect to income and car costs are estimated. It should, however, be noted that the level of state dependence is considerably larger for households with single car ownership as compared with multiple car ownership. This suggests that the holding of a second car will be more affected by changes in the socioeconomic conditions of the household and by economic policy shocks
AB - Using a large household panel we estimate demand for car ownership by means of a dynamic multinomial model with correlated random effects. Results suggest that the persistence in car ownership observed in the data should be attributed to both true state dependence and to unobserved heterogeneity (random effects). It also appears that random effects related to single and multiple car ownership are correlated, suggesting that the IIA assumption employed in simple multinomial models of car ownership is invalid. Relatively small elasticities with respect to income and car costs are estimated. It should, however, be noted that the level of state dependence is considerably larger for households with single car ownership as compared with multiple car ownership. This suggests that the holding of a second car will be more affected by changes in the socioeconomic conditions of the household and by economic policy shocks
KW - Faculty of Social Sciences
KW - consumer economics
KW - automobiles
KW - Denmark
M3 - Journal article
VL - 145
SP - 83
EP - 100
JO - Nationaloekonomisk Tidsskrift
JF - Nationaloekonomisk Tidsskrift
SN - 0028-0453
IS - 1
ER -
ID: 1385479