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140 I N N O VAT I O N S I N T R AV E L D E M A N D M O D E L I N G , V O L U M E 2 ship decisions of San Francisco Bay area residents will be rent empirical context. But, in general, it is important to presented at the innovative modeling conference. The consider the methodology developed in this paper to important findings from this application are as follows. control for the potential presence of self-selection due to First, BE attributes affect residential choice and car own- both observed and unobserved household factors. Only ership decisions. Thus, policy decisions regarding by estimating the joint model can one conclude about changes in BE characteristics must be evaluated in the the potential presence or absence of self-selection effects joint context of both decisions, so that spatial relocation due to unobserved factors. patterns and car ownership changes can be analyzed. Such a complete picture enables a comprehensive assess- ment of potential travel-related changes due to BE poli- REFERENCES cies. Second, the authors' findings support the notion that the commonly used population and employment Badoe, D. A., and E. J. Miller. 2000. TransportationLand Use density measures are actually proxy variables for such Interaction: Empirical Findings in North America, and BE measures as street block density and transit accessi- Their Implications for Modeling. Transportation Research bility. Third, in the context of car ownership decisions, Part D: Transport and Environment, Vol. 5, No. 4, pp. both household demographics and BE characteristics are 235263. influential, with household demographics having a Berry, S., J. A. Levinsohn, and A. Pakes. 1995. Automobile stronger effect. Fourth, there is variation in sensitivity to Prices in Market Equilibrium. 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Unobserved household- and Between Travel and Activity Episodes: An Analysis of specific factors also play an important role in the sensi- Weekend Recreational Participation in the San Francisco tivity to commute time and street block density (in the Bay Area. Transportation Research Part A: Policy and residential choice model) and employment density and Practice, Vol. 38, No. 8, pp. 573592. street block density (in the car ownership model). Ignor- Bhat, C. R., and S. K. Singh. 2000. A Comprehensive Daily ing such systematic and random variations in sensitivity ActivityTravel Generation Model System for Workers. to BE attributes will, in general, lead to inconsistent Transportation Research Part A: Policy and Practice, Vol. results regarding the effect of BE attributes on travel 34, No. 1, pp. 122. behavior decisions, which can, in turn, lead to inappro- Bhat, C. R., and S. Srinivasan. 2005. A Multidimensional priate policy decisions. Fifth, household income is the Mixed OrderedResponse Model for Analyzing Weekend dominant factor in residential sorting. Specifically, low- Activity Participation. Transportation Research Part B: income households consciously choose to (or are con- Methodological, Vol. 39, No. 3, pp. 255278. strained to) locate in neighborhoods with low commute Bhat, C. R., and H. Zhao. 2002. The Spatial Analysis of Activ- costs, long commute times, and high employment den- ity Stop Generation. Transportation Research Part B: sity compared with their high-income counterparts. Such Methodological, Vol. 36, No. 6, pp. 557575. low-income households also intrinsically choose to own Bhat, C. R., S. Srinivasan, and K. W. Axhausen. 2005. An fewer cars. Thus, ignoring income effects in car owner- Analysis of Multiple Interepisode Durations Using a Unify- ship (and, by extension, other travel decisions) can lead ing Multivariate Hazard Model. Transportation Research to an inflated effect of BE and related variables on travel Part B: Methodological, Vol. 39, No. 9, pp. 797823. behavior decisions. Other demographic factors that Boarnet, M. G., and R. Crane. 2001. The Influence of Land impact residential sorting based on car ownership pref- Use on Travel Behavior: Specification and Estimation erences correspond to the presence of senior adults in the Strategies. Transportation Research Part A: Policy and household and whether or not a person lives alone. Practice, Vol. 35, No. 9, pp. 823845. Finally, and rather surprisingly, the results did not sup- Boarnet, M. G., and S. Sarmiento. 1998. Can Land-Use Policy port the notion of residential sorting in car ownership Really Affect Travel Behavior? A Study of the Link Between propensity based on unobserved household factors. This Nonwork Travel and Land-Use Characteristics. 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