working paper

Joint Modelling of Attitudes and Behaviour in Project Evaluation: Case Study of Single-Occupant Vehicle Toll Use of Carpool Lanes in San Diego, California

Abstract

Knowing what people think about the usefulness, fairness, and success of new transport initiatives is vital information for planners and project evaluators. Methods for studying the complex relationships between attitudes and choice behaviour need to be included in evaluation processes. 

The attitudes of an individual faced with a new transport option will depend in part on whether the individual can take advantage of the new option, whether he or she actually chooses to take advantage, and the perceived benefits of the option, to the individual and to the community. Transport planners use choice models to understand factors affecting demand, but modelling of attitudes has not received similar attention. In this paper we demonstrate how a joint model of attitudes and behaviour can be used in comprehensive project evaluation. The approach involves analysing attitude survey data using a structural equations model designed for use with discrete choice and ordinal-scale variables. 

Our application involves the evaluation of responses to a project that allows solo drivers to pay a fee to use a carpool, or high-occupancy vehicle (HOV) lane facility on the Interstate 15 (1-15) Freeway in San Diego. The attitude survey is of subscribers to the program and a random sample of other freeway users. Four endogenous variables are explained as functions of each other and of exogenous variables such as income, household composition, age and gender. These endogenous variables are: (1) choice of subscription to the program, (2) mode choice of carpooling versus solo driving, (3) perception of the seriousness of the traffic congestion on the route, and (4) attitude towards allowing solo drivers to pay to save time by using the carpool lanes.

working paper

Can HOT Lanes Encourage Carpooling? A Case Study of Carpooling Behavior on the 91 Express Lanes

Abstract

This paper is a case study of carpooling behavior on the 91 Express Lanes. The 91 Express Lanes are the nation’s first implementation of High Occupancy/Toll (HOT) lanes where carpools with three or more passengers could use the lanes for free (at the time the data for this study was collected) and others pay a toll that varies by time of day to use the premium Express Lane. One concern over such a policy is that people won’t carpool if they can just pay for the travel time savings that they would normally obtain by carpooling and using a High Occupancy Vehicle (HOV) lane. Our survey data show that the rate of carpooling did not change much between the opening of the Express Lanes and now, there is a lot of changing between modes (increases and decreases in the number of passengers), there are a large number of people that carpool a few times a week, and that HOV-2s use both the regular lanes and the Express Lanes. We further investigate whether HOT lanes encourage carpooling by modeling carpool formation with discrete choice models. The results show that mode choice behavior in the corridor is similar to carpooling behavior in other locations and carpooling in the corridor is not discouraged.

Phd Dissertation

Essays in applied econometrics

Abstract

This dissertation explores the estimation of non-linear multivariate systems in their reduced forms. The first essay develops a new method to solve multivariate discrete-continuous problems and applies the model to measure the influence of residential density on households’ vehicle holdings choices and vehicle usage. Traditional discrete-continuous modeling of vehicle holdings choice and vehicle usage becomes unwieldy with large numbers of vehicles and vehicle categories. I propose a more flexible method of modeling vehicle holdings in terms of number of vehicles in each category, with a Bayesian multivariate ordinal response system. I also combine the multivariate ordered equations with Tobit equations to jointly estimate vehicle type/usage demand in a reduced form, offering a simpler alternative to the traditional discrete/continuous analysis. Using the 2001 National Household Travel Survey data, I find that increasing residential density reduces households’ truck holdings and utilization in a statistically significant but economically insignificant way. The method developed above can be applied to other discrete-continuous problems. The second essay (with Ivan Jeliazkov) quantifies the interaction between political governance and macroeconomic performance in the United States by estimating a dynamic system: a vector autoregression (VAR) model involving macroeconomic variables and a presidential partisan dummy, and a regression equation of the presidential election outcome on the economic outcomes. The joint analysis of these components allows us to explore the dynamics of political business cycles and the impact of the economy on electoral uncertainty, and permits us to study their interaction. Our estimates of the short-run economic effects of elections are broadly consistent with the established view that short-run upturns in growth and employment follow the election of Democratic governments, while the opposite is true for Republicans. However, we show that the long-run outcomes are opposite to the short-run effects, which is in contrast to results in the existing literature where the long-run outcomes, although smaller in size, are found to be similar to those in the short-run. Our results from the electoral part of the model show that the incumbency effect in the U.S. is minimal, and that output growth has a noticeable and largely symmetric effect on the election outcomes for both parties. The last chapter (with David Brownstone) explores the influence of residential density on households’ vehicle fuel efficiency and usage choices with a sample of a national scale. A Bayesian approach that corrects for the endogeneity of the residential density is used to mitigate the problem of sample selectivity. The results show that an increase in residential density has a negligible effect on car choice and utilization, but reduces truck choice and utilization with a modest scale marked by statistical significance. The effects are larger than, but qualitatively consistent with, those obtained in Chapter 1, in which a California sample was used and the endogeneity of the density variable left uncorrected. Out-of-sample forecasting accuracy results are also reported to test the robustness of the model.

working paper

Why Do Inner City Residents Pay Higher Premiums? The Determinants of Automobile Insurance Premiums

Abstract

Auto insurance rates can vary dramatically, with much higher premiums in poor and minority areas than elsewhere, even after accounting for individual characteristics, driving history and coverage. This project used a unique data set to examine the relative influence of place-based socioeconomic characteristics (or redlining) and place-based risk factors on the place-based component of automobile insurance premiums. We used a novel approach of combining tract-level census data and car insurance rate quotes from multiple companies for sub-areas within the city of Los Angeles. The quotes are for a hypothetical individual with identical demographic and auto characteristics, driving records and insurance coverage. This method allowed the individual demographic and driving record to be fixed. Multivariate models are then used to estimate the independent contributions of these risk and redlining factors to the place-based component of the car insurance premium. We find that both risk and redlining factors are associated with variations in insurance costs in the place-based component, with black and poor neighborhoods being adversely affected, although risk factors are stronger predictors. However, even after risk factors are taken into account in the model specification, SES factors remain statistically significant. Moreover, simulations show that redlining factors explain more of the gap in auto insurance premiums between black (and Latino) and white neighborhoods and between poor and nonpoor neighborhoods. The findings do not appear sensitive to the individual characteristics of the hypothetical driver.

working paper

Estimating Commuters' "Value of Time" and Noisy Data: a Multiple Imputation Approach

Abstract

We estimate how motorists value their time savings and characterize the degree of heterogeneity in these values by observable traits. We obtain these estimates by analyzing the choices that commuters make in a real market situation, where they are offered a free-flow alternative to congested travel. We do so, however, in an empirical setting where several key observations are missing. To overcome this, we apply Rubin’s Multiple Imputation Method to generate consistent estimates and valid statistical inferences. We also compare these estimates to those produced in a “single imputation” scenario to illustrate the potential hazards of single imputation methods when multiple imputation methods are warranted. Our results show the importance of properly accounting for errors in the imputation process, and they also show that value of time savings varies greatly according to motorist characteristics.

working paper

The Value of Time and Reliability: Measurement from a Value Pricing Experiment

Abstract

We measure values of time and reliability from 1998 data on actual behavior of commuters on State Route 91 in Orange County, California, where they choose between a free and a variably tolled route. For each route at each time of day and for each day of the week, the distribution of travel times cross different weeks is measured using loop detector data. The best-fitting models represent travel-time by its median and unreliability by the difference between the 90th percentile and the median. We present models of route choice both alone and combined with other choices, namely time of day, car occupancy, and installation of an electronic transponder. In our best model, containing all these choices except time of day, value of time (VOT) is $22.87 per hour, while value of reliability is $15.12 per hour for men and $31.91 for women. These values are 72%,48%, and 101%, respectively, of the average wage rate in our sample.

working paper

Commuting Time as a Measure of Employment Costs: Implications for Estimating Labor Supply Elasticities

Abstract

Although the neoclassical labor economics literature assumes that hours of work are determined solely on the supply side as a result of individual demand for leisure, an abundance of evidence points to the importance of employer demand factors in the market for hours of work. Despite the appeal of models allowing for simultaneity in the market for hours, the scarcity of appropriate data has made their estimation difficult. In this paper I attempt to incorporate labor demand into the problem of hours determination in an empirically tractable manner by exploiting the theoretically distinct roles played by commuting time at the individual and aggregate levels. Applying instrumental variables techniques to data from the 1990 U.S. Census yields larger cross-sectional wage elasticities of labor supply for both men and women than are generally found using conventional estimation methods.

Phd Dissertation

Economic spillovers of highway investment: A case study of the employment impacts of Interstate 105 in Los Angeles County.

Abstract

Most economists agree that new investments in highways at this point in time in the United States have little impact on overall growth in output. New highways play a more important role in shifting economic activities among places, drawing jobs from other locations into the highway corridors, a phenomenon known as negative spillovers. The objective of this dissertation is two-fold, to examine the proposal to decentralize highway finance, which aims to solve the financial responsibility mismatch problem that stems from economic spillovers of highways, and to test the hypothesis of economic spillovers of highway investment at the metropolitan level. First, to better understand how spillovers influence the highway investment decision, the theoretical framework from the interjurisdictional tax competition literature is borrowed to model governments’ investment behaviors. Numerical simulations show that decentralized local governments, which independently maximize output in their own jurisdiction, may engage in wasteful investments in highways with the presence of spillovers. Second, to shed more light on the spatial detail of economic spillovers, empirical tests of the spillover hypothesis are conducted at the metropolitan level, with census tracts as the unit of observation. The results of the quasi-experiment reveal census tract employment growth patterns that confirm the existence of negative spillovers caused by the opening of the Interstate 105 in 1993. The benefiting area, which grew substantially after the highway was opened, is limited to a long narrow corridor around the highway, while nearby locations outside the corridor experienced slow growth relative to the rest of the metropolitan area after controlling for various factors. Together, these results suggest that although negative spillovers are present at the metropolitan level, decentralizing highway finance may not be an effective policy to deal with the financial responsibility mismatch problem. Highway finance should remain centralized within metropolitan areas, and regional governing bodies should pay special attention to the distributional impact of highway projects.

working paper

Benefits, Acceptance, and Marketability of Value-Priced Services: California's Route 91 Express Lanes

Abstract

Transportation professionals have always been interested in how travelers respond to different transportation options. A new application of congestion pricing offers the opportunity to extend such research to situations where travelers face a priced alternative. Travelers along State Route 91 (SR 91) in Southern California can now pay a time-varying fee in order to travel on a set of essentially congestion-free “Express Lanes” located in the median of a very congested preexisting freeway. For this study, we conduct a mail survey of such travelers to learn how they decide to use the free lanes or the toll lanes. We use the data to estimate route choice models and models that incorporate various types of real-time information about accidents, traffic conditions, and price levels into the route choice decision. This study provides new information about the acceptance of congestion pricing, the use of real-time information in making dynamic travel decisions, and individual travelers’ interests in forming carpools.

Phd Dissertation

Trip Scheduling and Economic Analysis of Transportation Policies

Abstract

This dissertation seeks to understand how urban commuters adjust their schedules and modes to congestion, as well policy implications of this adjustment. An equilibrium simulation model of commuting traffic on a hypothetical, urban highway corridor is developed. The demand side is a discrete choice model of mode and time of day, estimated with data from the San Francisco Bay Area. The supply side is a speed-flow function that predicts travel time from flows leaving the corridor.

The research has three objectives: to simulate the effects of capacity expansion, optimal toll, and six other pricing policies; to test hypotheses relating to schedule shifts in response to congestion and policy changes; and to estimate biases in policy effects when schedule shifts are ignored. An iterative procedure is developed to compute optimal tolls that vary with time of day.

Policies are examined from five perspectives: welfare (consumer surplus, toll revenue, and total benefits), peaking (traffic counts and share in the peak 15-minute period), congestion (average and peak 15-minute travel delays), schedule delay (average variable schedule delay), and mode mix (mode shares, average occupancy, and total traffic).

Five results emerge. First, although an optimal toll can achieve substantial benefits, savings in travel delay are accompanied by increases in schedule delay. Second, a toll equal to the marginal social externalities of an additional trip at different times of day at a base case can achieve benefits equivalent to those of optimal toll, which is equal to the marginal social externalities of an additional trip at different times of day at a social optimum. Third, schedule delay has variable and constant components. The constant component is the equilibrium level at a base case when travel is free-flow. The variable component changes with congestion and policies. Fourth, urban commuters shift their schedules in response to congestion and policy changes. Heavy congestion forces people away from the peak; capacity expansion attracts people back to the peak; an optimal toll discourages people driving alone in the peak. Fifth, the benefits of capacity expansion and an optimal toll are substantially overestimated if trip scheduling is ignored.