A TRIP MODE CHOICE MODEL WITH ENDOGENEITY IN EXPLANATORY VARIABLES

Abstract

Travel mode choice behavior and residential choice behavior are considered to be mutually interrelated. If residential sorting effects are ignored when estimating mode choice of individuals, the estimation results would be biased because of the endogeneity in the model. In this paper, the mechanism of residential sorting and its effect on the economy are analyzed by building a theoretical model that explicitly treats emotional part of utility for choosing specific travel mode. We also verify the residential sorting effects by using person trip survey data in Japan. The paper concludes with a discussion of model findings for policy planning. In particular, we found implementing soft transport policy measures that effects of individuals' preference for travel mode have to be considered as one of the tools of city planning policy measures.