A dynamic random effects multinomial logit model of household car ownership

Research output: Contribution to journalJournal articlepeer-review

Standard

A dynamic random effects multinomial logit model of household car ownership. / Bue Bjørner, Thomas; Leth-Petersen, Søren.

In: Nationaløkonomisk tidsskrift, Vol. 145, No. 1, 2007, p. 83-100.

Research output: Contribution to journalJournal articlepeer-review

Harvard

Bue Bjørner, T & Leth-Petersen, S 2007, 'A dynamic random effects multinomial logit model of household car ownership', Nationaløkonomisk tidsskrift, vol. 145, no. 1, pp. 83-100.

APA

Bue Bjørner, T., & Leth-Petersen, S. (2007). A dynamic random effects multinomial logit model of household car ownership. Nationaløkonomisk tidsskrift, 145(1), 83-100.

Vancouver

Bue Bjørner T, Leth-Petersen S. A dynamic random effects multinomial logit model of household car ownership. Nationaløkonomisk tidsskrift. 2007;145(1):83-100.

Author

Bue Bjørner, Thomas ; Leth-Petersen, Søren. / A dynamic random effects multinomial logit model of household car ownership. In: Nationaløkonomisk tidsskrift. 2007 ; Vol. 145, No. 1. pp. 83-100.

Bibtex

@article{b58a06b083c511dcbee902004c4f4f50,
title = "A dynamic random effects multinomial logit model of household car ownership",
abstract = "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",
keywords = "Faculty of Social Sciences, consumer economics, automobiles, Denmark",
author = "{Bue Bj{\o}rner}, Thomas and S{\o}ren Leth-Petersen",
note = "JEL Classification: D12, L62",
year = "2007",
language = "English",
volume = "145",
pages = "83--100",
journal = "Nationaloekonomisk Tidsskrift",
issn = "0028-0453",
publisher = "Nationaloekonomisk Forening",
number = "1",

}

RIS

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