Generalized Extreme Value-based (GEV) Error Structures for Multiple Discrete-Continuous Choice Models

This paper formally derives the class of multiple discrete-continuous generalized extreme value (MDCGEV) models, a general class of multiple discrete-continuous choice models based on generalized extreme value (GEV) error specifications. Specifically, the paper proves the existence of, and derives the general form of, closed-form consumption probability expressions for multiple discrete-continuous choice models with GEV-based error structures. In addition to deriving the general form, the paper derives a compact and readily usable form of consumption probability expressions that can be used to estimate multiple discrete-continuous choice models with general cross-nested error structures. The cross-nested multiple discrete-continuous choice model is applied to analyze household annual expenditure patterns in various transportation-related expenses using data from a consumer expenditure survey in the United States. The model estimation results indicate the superiority of the cross-nested model over the mutually exclusively nested and non-nested model specifications. Further, the cross-nested model was amenable to the accommodation of socio-demographic heterogeneity in inter-alternative covariance across decision-makers through a parameterization of the allocation parameters. The heterogeneous cross-nested model suggested significant heterogeneity in the cross-nesting patterns based on car ownership and household income.


  • English

Media Info

  • Media Type: DVD
  • Features: Appendices; References; Tables;
  • Pagination: 29p
  • Monograph Title: TRB 89th Annual Meeting Compendium of Papers DVD

Subject/Index Terms

Filing Info

  • Accession Number: 01155039
  • Record Type: Publication
  • Report/Paper Numbers: 10-1896
  • Files: TRIS, TRB
  • Created Date: Jan 25 2010 10:52AM