is reported for a year between 2010 and 2015 for 5 countries and after 2015 for 68 countries. These countries are divided into four income groups: 24 are in the High-income group, 27 are in the Upper middle-income group, 34 are in the lower-middle-income group, and 20 countries are in the Low-income group. Expenditures are disaggregated by expenditure quintiles within each country and between urban and rural locations.

Transport expenditures are classified into three subcategories: non-durable private transport, durable private transport, and transport services. Non-durable private transport expenditures include fuels and lubricants for personal transport equipment, maintenance and repair of personal transport equipment, and other services linked to personal transport equipment. Durable private transport expenditures include durable good purchases like cars, motorcycles, bicycles, and animal-drawn vehicles. Transport services expenditures include: passenger transport by railway, passenger transport by road, passenger transport by air, passenger transport by sea and inland waterway, combined passenger transport, and other purchase transport services. Total transport expenditures are the sum of both private transport types of expenditures and transport services expenditures.

**LSMS household surveys.** The Living Standards Measurement Study (LSMS) is a household survey program by the World Bank’s Development Data Group that provides technical assistance to national statistical offices in the design and implementation of multi-topic household surveys. This paper uses the latest LSMS surveys conducted in 18 countries from 2010 to 2018 (Table 2).<sup>3</sup> Most of the countries are from Sub-Saharan Africa, but there are also 3 countries from the South Asia region, one country from Europe and Central Asia region, one country from East Asia Pacific region, one country from Latin America and the Caribbean region, and 1 country from the Middle East and North Africa region. In terms of income groups: 10 countries are in the low-income group, 6 countries are in the lower middle-income group, and two countries are in the upper middle-income group.

The typical LSMS household survey contains questions on expenditures on private transport and transport services during recall periods. The questions on expenditures ask whether the households purchased any vehicles or paid for transport-related goods or services during the following periods of time: i) 7 days, ii) 1 month, iii) 3 months, iv) 6 months, and v) 1 year, and how much money was spent. Usually, short recall periods are used for transport expenditure on nondurables, such as public transport fares, fuels and lubricants, and maintenance and repairs, while the longer periods are used for transport expenditure on durables, such as purchases of vehicles, spare parts, and accessories.

Other household characteristics contained in LSMS surveys are used in the reduced-form regression part. Information on the total amount of expenditure, the size of the household and

> 3These surveys mainly fall into two categories; 10 of the 18 country surveys are from the LSMS collection included in the World Bank Microdata Library. The other 8 country surveys are from other multi-topic household surveys labelled as “LSMS-tagged” surveys.

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