A comprehensive analysis of household transportation expenditures relative to other goods and services

An application to United States consumer expenditure data

Nazneen Ferdous, Abdul Rawoof Pinjari, Chandra R. Bhat, Ram Pendyala

Research output: Contribution to journalArticle

21 Citations (Scopus)

Abstract

This paper proposes a multiple discrete continuous nested extreme value (MDCNEV) model to analyze household expenditures for transportation-related items in relation to a host of other consumption categories. The model system presented in this paper is capable of providing a comprehensive assessment of how household consumption patterns (including savings) would be impacted by increases in fuel prices or any other household expense. The MDCNEV model presented in this paper is estimated on disaggregate consumption data from the 2002 Consumer Expenditure Survey data of the United States. Model estimation results show that a host of household and personal socio-economic, demographic, and location variables affect the proportion of monetary resources that households allocate to various consumption categories. Sensitivity analysis conducted using the model demonstrates the applicability of the model for quantifying consumption adjustment patterns in response to rising fuel prices. It is found that households adjust their food consumption, vehicular purchases, and savings rates in the short run. In the long term, adjustments are also made to housing choices (expenses), calling for the need to ensure that fuel price effects are adequately reflected in integrated microsimulation models of land use and travel.

Original languageEnglish (US)
Pages (from-to)363-390
Number of pages28
JournalTransportation
Volume37
Issue number3
DOIs
StatePublished - May 2010

Fingerprint

expenditure
expenditures
savings
household expenditure
food consumption
system model
purchase
goods and services
analysis
household
Land use
land use
Sensitivity analysis
sensitivity analysis
travel
housing
Economics
consumption
resources
resource

Keywords

  • Consumer expenditure
  • Evaluating impacts of fuel price increase
  • Fuel prices
  • Multiple discrete continuous nested extreme value model
  • Transportation expenditure
  • Vehicle operating expenses

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Development
  • Transportation

Cite this

A comprehensive analysis of household transportation expenditures relative to other goods and services : An application to United States consumer expenditure data. / Ferdous, Nazneen; Pinjari, Abdul Rawoof; Bhat, Chandra R.; Pendyala, Ram.

In: Transportation, Vol. 37, No. 3, 05.2010, p. 363-390.

Research output: Contribution to journalArticle

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