China
Africa
Explore chapters and articles related to this topic
Discrete/Continuous Models
Published in Simon Washington, Matthew Karlaftis, Fred Mannering, Panagiotis Anastasopoulos, Statistical and Econometric Methods for Transportation Data Analysis, 2020
Simon Washington, Matthew Karlaftis, Fred Mannering, Panagiotis Anastasopoulos
where εin is a disturbance term added for discrete-outcome model estimation. If εin are assumed to be generalized extreme value distributed, a logit model for discrete outcomes results. In estimating Equation (15.17), corrections need to be applied to the vector of vehicle characteristics Zin such as instrumental variables or expected value methods to account for the endogeneity of vehicle characteristics. The major drawback with the economically consistent approach is that a nonlinear form of either the indirect utility function or continuous equation results. For example, from the previous model, the linear utilization equation produced a nonlinear indirect utility function. This nonlinearity complicates estimation of the discrete outcome model. In choosing between a reduced form and the economically consistent approaches, many applications require a trade-off between ease of estimation and compromising theory.
Quasi-Convex Functions
Published in Prem K. Kythe, Elements of Concave Analysis and Applications, 2018
Note that, contrary to quasi-concavity, the quasi-convexity provides a condition that allows minimization of v(p, x) on the lower contour set {p:v(p,m)≤v¯} $ \{p : v(p,m) \le \bar{v}\} $ , such that the indirect utility function plays the duality role in the theory of consumption and demand. ∙ $ \bullet $
Recent Literature on Energy and Economic Growth
Published in E. Victor Niemeyer, The Effect of Energy Supply on Economic Growth, 2017
The consumer behavior model uses the nine prices derived by the model of producer behavior and the value of total consumption spending provided by the macroeconometric growth model to determine the quantities of consumption purchases of the output of each of the nine sectors. It accomplishes this through the use of an indirect utility function. The functional form used, log linear, implies that the budget share of each commodity is fixed. This implies unitary price and income elasticities of demand for each commodity.
Impact of autonomous vehicles on the choice of residential locality
Published in Transportation Planning and Technology, 2022
The indirect utility function is found by substituting into for all r. Consumers compare the indirect utility function for each type g and determine their type g using the multinomial logit function (Figure 2). For instance, the probability of residential location and housing choice is given by where indicates the expected inclusive indirect utilities of choosing residential location i and housing type h, indicates the dispersion parameters, and indicates dummies. The number of commuting trips is calculated according to work and residential locations. The number of shopping trips is determined by demand for both daily consumption goods and travel goods.
On the effectiveness of residential involuntary load curtailment programs
Published in Energy Sources, Part B: Economics, Planning, and Policy, 2021
Marcin Czupryna, Leszek Morawski, Jan Rączka
We consider a household that selects the optimal set of electric appliances to be in current use in a short period of time. We use an indirect utility function approach to describe the behavior of such a household (Dubin and McFadden 1984). We assume that a household knows the utility from any set of electric appliances available for use. We also assume that the set that provides higher utility causes higher electricity consumption and that the marginal utility from unit electricity consumption diminishes with increasing usage of devices – switching on each additional light bulb brings less and less utility. For a large number of electrical devices, we can approximately treat the electricity consumption as a continuous variable. The power utility function is the simplest function satisfying the condition of diminishing marginal utility. If we assume that a household knows the amount of electricity used by the set of appliances turned on, we may describe the household utility surplus optimization problem using Equation 3:
A study on benefit estimation that considers the values of travel time and travel time reliability in road networks
Published in Transportmetrica A: Transport Science, 2018
By solving PP-2, the demand function can be obtained as shown in Equation (15). This demand function is the same as that obtained by employing a Cobb–Douglas style utility function (Cobb and Douglas 1928). By substituting the demand function into the utility function denoted by Equation (1), we obtained the indirect utility function, v, as follows: According to duality theory, the expenditure function is obtained as where p in Equation (17) is the vector of the prices of O–D flows E[Qi]. Therefore, the CV is obtained as follows: The superscripts w and wo indicate the condition with the transport projects and without the transport projects, respectively. We employ these conventions for all kinds of variables in the rest of paper. Note that, pi is different from the generalized travel cost of O–D pair i. However, by applying the following one-to-one mapping from the price, pi, to the corresponding generalized travel cost, gci, which is derived from Equations (8) to (11), pi can be transformed to gci. (The correspondence to the case of was discussed in Section 2.)