A multiple discrete continuous model of time use that accommodates non-additively separable utility functions along with time and monetary budget constraints

Pellegrini, A and Pinjari, AR and Maggi, R (2021) A multiple discrete continuous model of time use that accommodates non-additively separable utility functions along with time and monetary budget constraints. In: Transportation Research Part A: Policy and Practice, 144 . pp. 37-53.

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Abstract

This paper proposes a multiple discrete continuous (MDC) choice modelling framework with the following features for analyzing individuals� time use decisions: (a) accommodates non-additively separable (NAS) utility functions with respect to time allocation across different non-work activities, (b) considers both time and money constraints by integrating the two constraints into a single economic constraint, and (c) allows corner solutions for (i.e., non-participation in) discretionary, non-work activities. The proposed framework is applied to analyze weekly time use of employed individuals in Netherlands using a data set derived from the Time use and Consumption survey of the Longitudinal Internet Studies for the Social Sciences (LISS) panel. The empirical results of the proposed model are compared to those from two simpler models � (a) a model that ignores the monetary budget constraint but employs the NAS utility function and (b) a model that considers both time and money budget constraints but uses a simpler, additively separable utility function. The results suggest that considering both time and money constraints, when combined with the NAS utility function, facilitates in capturing rich substitution patterns in time allocation to non-work activities, in addition to revealing demographic heterogeneity in satiation effects. Further, the proposed model offers a superior goodness of fit when compared to that from the simpler models that ignore either the monetary constraint or the NAS utility function. Finally, the model results provide important policy insights for reducing demographic inequities in time allocation among employed individuals. © 2020 Elsevier Ltd

Item Type:	Journal Article
Publication:	Transportation Research Part A: Policy and Practice
Publisher:	Elsevier Ltd
Additional Information:	Copyright to this article belongs to Elsevier Ltd
Keywords:	Additives; Population statistics, Budget constraint; Choice modelling; Continuous modeling; Economic constraints; Monetary constraints; Non-work activities; Substitution patterns; Utility functions, Budget control, discrete choice analysis; modeling; policy analysis; time allocation, Netherlands
Department/Centre:	Division of Interdisciplinary Sciences > Center for Infrastructure, Sustainable Transportation and Urban Planning (CiSTUP) Division of Mechanical Sciences > Civil Engineering
Date Deposited:	29 Jan 2021 05:17
Last Modified:	29 Jan 2021 05:17
URI:	http://eprints.iisc.ac.in/id/eprint/67591

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