A Copula-Based Sample Selection Model of Telecommuting Choice and Frequency

Ipek N Sener, Chandra R Bhat
2011 Environment and planning A  
The confluence of a need to reduce traffic congestion during the peak periods, as well as reduce vehicle miles of travel due to work-related travel (which contributes to GHG emissions from the transportation sector), has led planning organizations and regional governments to consider several demand management actions, one of them being the promotion of telecommuting. The objective of this study is to contribute to the telecommuting literature by jointly examining the propensity and frequency of
more » ... workers to telecommute, using a rich set of individual demographics, work-related and occupation characteristics, household demographics, and commute trip/work location characteristics. The data are drawn from the Chicago Regional Household Travel Inventory, collected between 2007 and 2008. From a methodological standpoint, the current study adopts a copula approach that allows the testing of several types of dependency structures between the telecommuting choice and frequency behavioural processes. To our knowledge, this is the first formulation and application in the econometric literature of a copula approach for the case of a binary self-selection mechanism with an ordered-response outcome. The results clearly indicate that telecommuting choice and the frequency of telecommuting are governed by quite different underlying behavioral processes. In particular, the determinant factors of telecommuting choice and frequency can be different. Further, a factor that has a particular direction of effect on telecommuting choice may have the opposite effect on frequency. Also, the analyst risks the danger of incorrect conclusions regarding dependency in the telecommuting choice and frequency behavioral processes, as well as inconsistent and inefficient parameter estimates, by imposing incorrect dependency structures or assuming independence between the two behavioral processes. Overall, the empirical results indicate the important effects of several demographic and work-related variables on telecommuting choice and frequency, with implications for transportation planning and transportation policy analysis.
doi:10.1068/a43133 fatcat:tg4rayd7zbaxdgx36gc3mwv6sm