On the Subjective Valuation of Travel Time Savings
JARA-DIM S R and GUEVARA C A, Universidad de Chile, Chile
The reassignment of time from one activity to another that is more pleasurable, has indeed a value for the individual. This subject has been explored for more than thirty years by researchers Û-om many different perspectives, including those with an inter
The reassignment of time from one activity to another that is more pleasurable, has indeed a value for the individual. This subject has been explored for more than thirty years by researchers Û-om many different perspectives, including those with an interest in either the study of the labour market, the analysis of home activities, or the understanding of travel behaviour.
The theories of time allocation deal with the issue of time valuation in many different ways. Different concepts of value of time emerge: as a resource, as an assignment, as a reduction. In the following section these concepts are clearly identified, and their evolution in the literature is presented.
On the other hand, the subjective value of travel time (SVTT) is the amount the individual is willing to pay in order to reduce by one unit hisher travel time. The usual procedure to measure these values is to estimate discrete travel choice models and to calculate the rate of substitution between time and money, for a constant utility. The interpretation of this ratio depends upon the underlying theory that is believed to originate the conditional indirect utility function that represents each choice, which includes cost and time. In the third section we show the relation between the SVTT and the different elements in the theory, starting with the goodsfleisure framework, expanding it to all activities and to the consideration of aggregate relations between consumption and leisure.
We show that the discrete approach does capture a relevant value that is perfectly consistent with the (continuous) microeconomic approaches to time allocation. We postulate an expanded version of the goods/leisure model as the basis for the interpretation of the SVTT.
Association for European Transport