 A new closed-form two-stage budgeting-based multiple discrete-continuous modelChandra R. Bhat Transportation Research Part B: Methodological, 2022, vol. 164, issue C, 162-192 Abstract: In this paper, we propose a multiple discrete-continuous (MDC) model approach that (a) does not need the total budget to be observed or predetermined, (b) allows for any finite or not-so-finite budget over the entire set of inside and outside goods, and (c) preserves a strong endogenous utility-theoretic link between inside good consumptions and the budget allocated to the inside goods (that is, to the product group of interest). We show that our proposed model, including a fractional MDC model at the lower level linked up to a Tobit model for the budget allocation to the inside goods, is strictly consistent with a two-stage budgeting utility theoretic structure. As importantly, by using reverse Gumbel distributional assumptions for the stochastic terms in the model system, we derive an incredibly simple closed-form model that, to our knowledge, is a first of its kind in the econometric literature. In doing so, we formally introduce a new distribution, which we label as the minLogistic distribution, to the statistical literature, and derive the properties of the distribution that is then used in the forecasting stage of the proposed model. An application of the proposed model to investigate the household vehicle fleet composition and usage demonstrates its potential relative to an unlinked and exogenously developed budget for the inside goods. The proposed model has the potential to open up a whole new world of MDC applications in general, and particularly for those cases with an unobserved total budget over the inside and outside goods. Keywords: Multiple discrete-continuous model; Two-stage budgeting; Reverse gumbel distribution; Utility-theoretic model; MinLogistic distribution; Vehicle fleet modeling (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:transb:v:164:y:2022:i:c:p:162-192 Ordering information: This journal article can be ordered from DOI: 10.1016/j.trb.2022.08.006 Access Statistics for this article Transportation Research Part B: Methodological is currently edited by Fred Mannering More articles in Transportation Research Part B: Methodological from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.