A note on endogenous variables in household vehicle utilization equations

This paper presents an empirical analysis of the statistical bias resulting from the endogeniety of vehicle specific attributes in econometric models of household vehicle utilization. Using data from a recent U.S. household survey, both corrected and uncorrected vehicle utilization models are estimated. A comparison of these estimation results reflects the substantial bias in model coefficients, price elasticities and income elasticities that can result if the endogeneity of vehicle specific attributes is not considered.