Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2005:5: Latent Variables in a Travel Mode Choice Model: Attitudinal and Behavioural Indicator Variables

Maria Vredin Johansson (), Tobias Heldt () and Per Johansson ()
Additional contact information
Maria Vredin Johansson: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Tobias Heldt: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Per Johansson: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

Abstract: In a travel mode choice context, we use survey data to construct and test the significance of five individual specific latent variables – environmental preferences, safety, comfort, convenience and flexibility - postulated to be important for modal choice. Whereas the construction of the safety and environmental preference variables is based on behavioural indicator variables, the construction of the comfort, convenience and flexibility variables is based on attitudinal indicator variables. Our main findings are that the latent variables enriched discrete choice model outperforms the traditional discrete choice model and that the construct reliability of the “attitudinal” latent variables is higher than that of the “behavioural” latent variables. Important for the choice of travel mode are modal travel time and cost and the individual’s preferences for flexibility and comfort as well as her environmental preferences.

Keywords: Modal choice; latent variable; discrete choice model; modal safety

JEL-codes: C35; R41

31 pages, February 7, 2005

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