Estimating the value of time: An additional misspecification error

摘要

This note is an extension of arguments made in an earlier article by J. Guttman in this journal. It points out a specification error in estimating the value of time when parking costs are added to modal running costs, to create a single cost variable. After developing arguments for separating modal costs from parking costs, estimates for Toronto are provided. These estimates demonstrate the magnitude of this type of aggregation bias.