AN ABSTRACT MODE APPROACH TO THE DEMAND FOR TRAVEL

IN A RECENT PAPER, QUANDT AND BAUMOL HAVE SUGGESTED THAT THE DEMAND FOR TRAVELLING BY AIR, BUS, AUTO AND RAILROAD MAY BE CONSIDERED AS DETERMINED BY THE SAME DEMAND FUNCTION IF SUCH A FUNCTION IS APPROPRIATELY FORMULATED. THE MODELS BASED ON THIS HYPOTHESIS IN GENERAL SPECIFY THAT THE NUMBER OF TRIPS MAY BE EXPLAINED BY MODAL CHARACTERISTICS OF VARIOUS TRANSPORTATION FACILITIES SUCH AS JOURNEY TIME, MONEY COST AND DEPARTURE FREQUENCY AS WELL AS SOME SOCIO- ECONOMIC CHARACTERISTICS AT THE ORIGIN AND THE DESTINATION SUCH AS POPULATION AND INCOME. THE MAJOR ADVANTAGE OF THESE MODELS, KNOWN AS "THE ABSTRACT MODE MODELS", IS THEIR POTENTIAL FORECASTING ABILITY FOR ANY NEW MODE OF TRANSPORTATION FACILITY. THE PRESENT PAPER PRESENTS A FORMAL DISCUSSION OF THE THEORETICAL FOUNDATION OF SUCH AN ABSTRACT MODE APPROACH. IT HAS BEEN SHOWN THAT THE DEMAND FUNCTION AS SPECIFIED BY THE ABSTRACT MODE MODELS CAN BE DERIVED FROM THE UTILITY FUNCTION IF A CONSUMER IS SUPPOSED TO ACT AS IF HE WERE MAXIMIZING THE UTILITY FUNCTION SUBJECT TO THE USUAL BUDGET CONSTRAINT AND THE ADDITIONAL COMMODITY CONSTRAINTS WHICH DEFINE THE FEASIBLE COMBINATIONS OF MODAL CHARACTERISTICS. THE MAJOR PURPOSE OF THE PRESENT PAPER IS TO EXAMINE HOW THE ABSTRACT MODE MODELS OF THE DEMAND FOR TRAVEL CAN BE APPROPRIATELY FORMULATED. FOR EMPIRICAL ANALYSIS, A LOG-LINEAR FORMULATION AND A NON-LINEAR FORMULATION HAVE BEEN PROPOSED. SEVERAL VERSIONS OF EACH OF THESE TWO MODELS HAVE BEEN ESTIMATED BY UTILIZING THE CROSS- SECTION DATA COLLECTED FOR THE NORTHEAST CORRIDOR OF THE UNITED STATES. THE POSSIBILITY OF IMPROVING THE EFFICIENCY OF THE ESTIMATION THROUGH AN APPLICATION OF THE GENERALIZED LEAST-SQUARES PROCEDURE IS ALSO EXAMINED BY CONSIDERING A MODEL WITH CORRELATED ERROR TERMS. IT HAS BEEN SHOWN THAT, UNDER THIS MORE GENERAL MODEL, THE ORDINARY LEAST-SQUARES ESTIMATES ARE STILL ASYMPTOTICALLY EFFICIENT. THE EMPIRICAL RESULTS PRESENTED ARE BASED ON SUCH A RELATIVELY SIMPLE PROCEDURE. IN GENERAL, BOTH THE LOG-LINEAR MODEL AND THE NON-LINEAR MODEL FORMULATED PROVIDE VERY SATISFACTORY EMPIRICAL RESULTS. /TR/

  • Supplemental Notes:
    • Vol 3, No 4, PP 443-461, 2 TAB, 12 REF
  • Authors:
    • Young, K H
  • Publication Date: 1969-12

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Filing Info

  • Accession Number: 00201788
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 1 1970 12:00AM