McFadden choice

McFadden choice

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1、TInup.Res.WI.12.pp.349-m@pu(amonpress~rd..1978.PrintedinBrentBritainTHEGOODS/LEISURETRADEOFFANDIXSAGGREGATEWORKTRIPMODECHOICEMODELStCambridgeSystematics.Inc.lWest.2161ShattuckAvenue,Berkeley,CA94704,U.g.A.andDANIELMCFADDENUniversityofCalifornia,Berkeley;CambridgeSystemati

2、cs,Inc./West(Received24September1977;inrevisedform22February1978)Ah&act-Indisaggregateworktripmodechoicemodels,thewageoftheworkeroftenentersasanexplanatoryvariable.Insomemodels,thecostoftravelisdividedbytheworkerswage,whileinothermodelsthetraveltimesare.multipliedbythewag

3、e.Thispaperanalyxestheuseofwageinmodechoicemodelsandshowshowdifierentassumptionsabouttheworkersindiierencemappingbetweengoodsandleisureleadtodifferentmethodsofenteringwage.UsingaCobb-DouglasutilityfunctionAG-@Lb,whereGisgoodsandtisleisure,itisshownthatwheng=0timeshouldbem

4、ultipliedbywageinthemodechoicemodelandwhenj3=1costshouldbedividedbywage.Forvaluesofgbetween0and1amoregeneralmodelobtainsinwhichthevalueof/Iisaparametersubjecttoestimation.Pr&minaryevidenceindicatesthatthevalueoffiisbetween0.7and1.0.1.mInthepresentpaper,worktripmodechoicem

5、odelsIndisaggregateworktripmodechoicemodels,thewagearederivedfromtheneoclassicaltheoryofthetrade-offoftheworkeroftenentersasanexplanatoryvariable.Inbetweengoodsandleisure.Itisshownthatallowingsomecases(Train,1976,forexample)thecostoftravelwage.toenterrepresentativeutility

6、isjustified.isdividedbytheworkerswagetoreflectthepresump-Furthermore,itisshownthattheshapeofthetionthataworkerwithahighwageislessconcernedconsumersindifferencemappingforgoodsandleisure.aboutcostthanaworkerwithalowwage.Inothercasesdeterminesthemannerinwhichwageshouldenter(

7、McFadden,1974,forexample)traveltimeismultipliedrepresentativeutility.Finally,ageneralmodelisbytheworkerswagetoreflectthepresumptionthatapresentedinwhichtheshapeoftheindifferencemappingworkerwithahighwageismoreconcernedwithlostisrepresentedbyaparameterwhichcanbeestimatedti

8、methanaworkerwithalowwage.ratherthanspecifiedapriori.Twoproblemsariseconcerningtheuseofwageasane

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