The Impact of Demographics, Built Environment Attributes, Vehicle Characteristics, and Gasoline Prices on Household Vehicle Holdings and Use Chandra R. Bhat



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3.2 Mixed MDCEV-MNL Model

The model developed thus far does not incorporate error correlation and/or random components in either the MDCEV vehicle type component or in the MNL make/model component. These can be accommodated by considering the vector in the baseline preference of the MDCEV component and the vector characterizing the parameters in the MNL models as being draws from multivariate normal distributions and . The unconditional probability of vehicle holdings and usage may then be written as:


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