Sensitivity of the subjective value of travel time for different microeconomic models: empirical evidence for university students

Abstract

This paper analyses the sensitivity of the subjective value of travel time (SVT) by considering different models based on the microeconomic theory of time allocation, as well as different econometric specifications of discrete choice models, and provides empirical evidence of this. Thus, the objective is to estimate wage rate and expenditure rate models together with a model that includes cost-weighted income. For this purpose we use discrete choice econometric models in which heterogeneity among individuals is introduced. Taking into account that the most important benefit of a transport infrastructure project is the value of the travel time saved, the subjective value of time (SVT), the results allow us to determine which microeconomic model and empirical specification are the most robusto In addition, we can obtain comparisons of the values obtained for different countries and areas of study. For estimates, data from an origin-destination survey conducted among students at the University of Cantabria in the city of Santander (Spain) have been used.