In this paper is discussed an application of a recently developed econometric technique for correcting selectivity bias in discrete and continuous modeling systems with multiple discrete choices. The case studied is the household's choice of type of vehicle to own andthe extent to which it is utilized. An appropriate model structure is formulated, and vehicle utilization equations that do and do not account for selectivity bias are estimated. The empirical results strongly underscore the importance of proper econometric treatment of discrete and continuous modeling systems.(A).
Samenvatting