Double Linear Combination Tobit Model for Changes in Location of Freight Facilities

Abstract

At the metropolitan-level, location of freight facilities is influenced by a number of factors which include industrial, commercial and residential activities. Therefore it is necessary for Infrastructure Planning to examine the effects of changes in yield on changes in them by a certain type of the activities. This paper tries to estimate relationship between the effects and the changes.
There is a question that it might be found that small changes in yield have no effect because of transactions costs, investment and so forth. For those kinds of problems, Double Linear Combination Tobit Model can be used. It shows the magnitude of insensitivity yielded between depedent variable and independent variables. The concept was pioneered by R.N.Rosett (1959). This paper also present a possible use of the methodology.