In the current paper, we propose a new multinomial probit-based model formulation for integrated choice and latent variable (ICLV) models, which, as we show in the paper, has several important advantages relative to the traditional logit kernel-based ICLV formulation. Combining
In this paper, we apply Bhat and Dubey's (2014) new multinomial probit (MNP)-based ICLV formulation to analyze children's travel mode choice to school. The new approach offered significant advantages, as it allowed us to incorporate three latent variables with a large data sample and with 10 ordinal indicators of the latent variables, and still estimate the ICLV model without any convergence problems. The data used in the empirical analysis originates from a survey undertaken in Cyprus in 2012. The results underscore the importance of incorporating subjective attitudinal variables in school mode choice modeling. The results also emphasize the need to improve bus and walking safety, and communicate such improvements to the public, especially to girls and women and high income households. The model application also provides important information regarding the value of investing in bicycling and walking infrastructure.
In the current paper, we propose the use of a multivariate skew-normal (MSN) distribution function for the latent psychological constructs within the context of an integrated choice and latent variable (ICLV) model system. The multivariate skew-normal (MSN) distribution that we use is tractable, parsimonious in parameters that regulate the distribution and its skewness, and includes the normal distribution as a special interior point case (this allows for testing with the traditional ICLV model). Our procedure to accommodate non-normality in the psychological constructs exploits the latent factor structure of the ICLV model, and is a flexible, yet very efficient approach (through dimension-reduction) to accommodate a multivariate non-normal structure across all indicator and outcome variables in a multivari8ate system through the specification of a much lower-dimensional multivariate skew-normal distribution for the structural errors. Taste variations (i.e., heterogeneity in sensitivity to response variables) can also
This paper formulates a multiple discrete-continuous probit (MDCP) land-use model within a spatially explicit economic structural framework for land-use change decisions. The spatial MDCP model is capable of predicting both the type and intensity of urban development patterns over large geographic areas, while also explicitly acknowledging geographic proximity-based spatial dependencies in these patterns. At a methodological level, the paper focuses on specifying and estimating a spatial MDCP model that allows the dependent variable to exist in multiple discrete states with an intensity associated with each discrete state. The formulation also accommodates spatial dependencies, as well as spatial heterogeneity and heteroscedasticity, in the dependent variable, and should be applicable in a wide variety of fields where social and spatial dependencies between decision agents (or observation units) lead to spillover effects in multiple discrete-continuous choices (or states). A simulation exercise is undertaken to evaluate the ability of the proposed maximum approximate composite marginal likelihood (MACML) approach to recover parameters from a cross-sectional spatial MDCP model. The results show that the MACML approach does well in recovering parameters. An empirical demonstration of the approach is undertaken using the city of Austin parcel level land use data.
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