A Methodology for the Estimation of Value-of-Time Using State-of-the-Art Econometric Models

Abstract

Value-of-time (VOT) measures are valuable in a wide range of public transport policy and planning applications. However, VOT is a latent variable that cannot be measured directly. In this research, state-of-the-art econometric models are developed within a methodological framework that allows for the estimation of the VOT. Ordered and binary discrete choice models have been developed. Furthermore, a mixed effects model that accounts for the unobserved heterogeneity across different individuals has also been specified. The models have been applied to short intercity trips between two medium-size cities (Agrinio and Patras) in Greece. The model specification combines trip-based characteristics (mode, travel time, and travel cost), with socioeconomic characteristics, such as profession, education, and car ownership. A stated-preference survey has been designed and administered to a random sample of 289 people. The estimated coefficients from the developed models have been used to estimate VOT measures and the overall performance of the ordered logit and the generalized linear mixed model has been found to be superior to the binary logit model.