Tjiong, J, Dekker, T orcid.org/0000-0003-2313-8419, Hess, S orcid.org/0000-0002-3650-2518 et al. (1 more author) (2022) The selection of income measures in value of travel time models and their implications for the VTT, its cross-sectional income elasticity and transport appraisal. Research in Transportation Economics, 94. 101168. ISSN 0739-8859
Abstract
This paper investigates the extent to which the selection of income variables during the estimation of choice models underlying national value of time (VTT) studies affects the cross-sectional income elasticity and the resulting VTT. Using data from the most recent GB (Great Britain) national VTT study, we focus on two contentious issues in relation to the income variable, namely taxation and within household budget allocation. Our work finds that accounting for the progressive nature of income tax and social benefits both increase the cross-sectional income elasticity. In the same vein, assumptions regarding the within-household budget allocation affect the cross-sectional income elasticity. Although the cross-sectional income elasticity is sensitive to the selected income variable, the impact on the nationally representative VTT is insignificant if the stated preference sample is representative with respect to the income variable. The observed discrepancies between the cross-sectional and the inter-temporal income elasticity of the VTT highlight that using these elasticities interchangeably influences the evaluation of future transport infrastructure decisions in terms of value for money.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Published by Elsevier Ltd. This is an author produced version of an article published in Research in Transportation Economics. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Value of travel time; Income elasticity; Income measure; Appraisal; Non-business |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > Institute for Transport Studies (Leeds) > ITS: Choice Modelling The University of Leeds > Faculty of Environment (Leeds) > Institute for Transport Studies (Leeds) > ITS: Economics and Discrete Choice (Leeds) |
Funding Information: | Funder Grant number EU - European Union 615596 |
Depositing User: | Symplectic Publications |
Date Deposited: | 07 Mar 2022 10:22 |
Last Modified: | 28 Feb 2023 01:13 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.retrec.2021.101168 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:184244 |
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Filename: 2021 Tjiong et al (RETREC_RETREC_2019_131).pdf
Licence: CC-BY-NC-ND 4.0