Cernicchiaro, G., and de Lapparent, M. (2015)
A dynamic discrete-continuous choice model for forward-looking agents owning one or more vehicles, Computational Economics 46:15-34.
During the last 40 years, a large number of studies have analyzed car holding and use behavior. Most of these ignore the dynamics of household and driver needs that very likely drive such decisions. Our work builds up on a disaggregate (compensatory) approach using revealed choices to address these dynamics. We develop a dynamic discrete/continuous choice model of car holding duration for forward-looking agents. We estimate this model using French panel survey data. Our findings indicate that a household’s time preference is a crucial element in car use and holding decisions.
doi:10.1007/s10614-014-9449-4 (click here for the full paper)