OTKA research – Heterogeneity in user preferences and its impact on transport project appraisal

Our department has submitted a successful OTKA application entitled heterogeneity in user preferences and its impact on transport project appraisal supported by the NKFI. The research project intends to enrich the Hungarian cost-benefit analysis methodology with novel statistical tools that allow for continuously distributed preference parameters, including the value of time, being treated as random variables with a standard parametric or non-parametric distribution. On the methodological side, the project aims to contribute to the literature of discrete choice modelling by disentangling the variance in the value of time caused by (i) exogenous variations in crowding levels, and (ii) individual heterogeneity that leads to dispersion at fixed crowding levels as well.
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