Choice of smallest car by multi-vehicle households and the demand for electric vehicles

Abstract A model explaining choice of smallest car by multi-vehicle households is estimated on data collected in the Baltimore area in the spring of 1977. The model is multinomial logit, with choice categories defined by distinguishing five size classes (including one “luxury” class) and four age categories. Household tradeoffs among value, operating cost, and size of cars are analyzed. Estimated household discount rates increase as household income declines. That is, the poorer the household, the more likely it is to focus on purchase-cost instead of model estimated earlier on panel data, which is more comprehensive than the Baltimore data for predicting the demand for electric vehicles. Results obtained by other investigators are compared.