A framework for transportation and land use integration as a parallel constrained multiple discrete-continuous extreme value (PC-MDCEV) home production model

Abstract

We propose a microeconomic foundation for transportation and land use choice model integration based on the theory of home production. A utility function is developed that considers both household monetary expenditure and individual time use. We introduce a parallel constrained multiple discrete-continuous extreme value (MDCEV) structure that allows for the inclusion of multi-person households in the model. An empirical application is provided for the Greater Toronto Area using a validated synthetic dataset. Empirical results demonstrate an economy of scale in time devoted to home production, analogous to scaling exhibit in market production. It was found that the mix of dwelling types (detached, apartment, etc.) has a significant influence on both time use and consumption. Finally, we provide several directions for future research to advance the practice of urban modelling and better capture the complex dynamics of household decision-making.

KEYWORDS:

• Home production
• MDCEV
• model integration

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 We adopt DeSerpa’s notation in this sub-section, which assumes a one-to-one relationship between time use and goods consumption, for consistency and simplicity. We use a slightly altered notation in the development of our model (see Table 1 for a summary).

2 Additional details on the derivation of the likelihood function given in Equation (22) are provided in an appendix.

Additional information

Funding

The study was funded by an NSERC CGS-D Scholarship and a CRDCN Emerging Scholar Grant by the first author and an NSERC Discovery Grant by the second author.