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How household transportation expenditures have evolved in Canada: a long term perspective

Sabreena Anowar (), Naveen Eluru and Luis F. Miranda-Moreno ()
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Sabreena Anowar: University of Central Florida
Luis F. Miranda-Moreno: McGill University

Transportation, 2018, vol. 45, issue 5, No 6, 1297-1317

Abstract: Abstract In recent years, increasing recognition of the challenges associated with global climate change and inequity in developed countries have revived researcher’s interest towards analyzing transportation related expenditure of households. The current research contributes to travel behaviour literature by developing an econometric model of household budgetary allocations with a particular focus on transportation expenditure. Towards this end, we employ the public-use micro-data extracted from the Survey of Household Spending (SHS) for the years 1997–2009. The proposed econometric modeling approach is built on the multiple discrete continuous extreme value model (MDCEV) framework. Specifically, in our analysis, the scaled version of the MDCEV model outperformed its other counterparts. Broadly, the model results indicated that a host of household socio-economic and demographic attributes along with the residential location characteristics affect the apportioning of income to various expenditure categories and savings. We also observed a relatively stable transportation spending behaviour over time. Additionally, a policy analysis exercise is conducted where we observed that with increase in health expenses and reduction in savings results in adjustments in all expenditure categories.

Keywords: Data pooling; Transportation expenditure; Scaled model; MDCEV (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/s11116-017-9765-3

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