A random-parameter (mixed logit) model to explain why more households in Dhaka city are deciding to purchase cars in recent years

摘要

This research represents a random parameter binary logit model exploring factors behind the car purchase decision of the household in Dhaka city who never had a car before. Results show the effects of different variables related to cost, safety, and transit (bus) availability on the stated car purchase decision. Major conclusion from the model is that, lack of proper bus service, reliability highly affects the car purchase decision. The elasticity values illustrate the importance of reforming and improving bus service in Dhaka, which can reduce the probability of purchasing new car decision. Further, results indicate several demographics (gender, homeownership), perception of safety have effects on the stated car purchase decisions.