A review of household dynamic vehicle ownership models: holdings models versus transactions models

Among disaggregate vehicle ownership models, which model the number and/or type of vehicles owned at the household level, one can distinguish holdings models, which deal with the (optimal) household fleet at a single point in time, and transactions models. The latter type of model explains changes to the household fleet, such as replacement and disposal. The paper describes previous attempts at such dynamic models and sketches how a vehicle transactions model could look (as an example we discuss an application to The Netherlands). This includes discussions of transaction probabilities, two-stage budgeting, introducing vehicle quality in the utility functions, and the envisaged model structure and data it could use.