A psychometric analysis of residential location

Traditional housing needs studies focus on the trade-off between location and housing amenities. In most models, mode choice is viewed as conditional behavior in a given setting. New movers, however, select a new environment which includes a house, neighbourhood and transportation system. By using psychometric techniques, the attitudes and preferences of new movers to the suburbs of a large northeast city were analyzed to determine the relative importance in their selection process of the transportation characteristics of the new location. It was found that local and regional transportation and public transit played little role in selecting an apartment. There was no evidence of tradeoffs between travel time and living space postulated by urban economics. Most important to the choice process of these residents were internal characteristics of the apartment and pricing issues. This supports the idea that suburbanites chose to be captive auto users even when equivalent housing opportunities with transport alternatives are available. Implications for public transit and land use planning alternatives for the suburbs are discussed.     

A generalization of residential location theory

This paper offers a more general theory of residential location as an alternative to the ‘trade- off’ model. The theory takes account of multiple employment centers, time as well as income constraints, environmental quality, non-work trips, local jurisdictions, the restricted number of houses available for occupation at any time and the constraints on choice imposed by the search process. The result is a very irregular bid rent surface. Its implications for the aggregate rent surface are discussed.     

Transport improvements,commuting costs,and residential location

This paper develops a theoretical framework for evaluating one of the long-run or secondary effects of a transport improvement. The familiar model of residential location is manipulated to derive an estimating equation relating changes in travel costs to changes in the household's preferred location. When estimated for a particular transport situation the major finding is the importance of the price effect. Although direct cost savings are important, especially in the short-run, in the long-run and especially for innovations with substantially increased speed or reduced operating costs the price effect may completely dwarf the income effect.     

The combined equilibrium of travel networks and residential location markets

The combined ‘user’ equilibrium of travel networks and residential location markets is shown to exist and to be unique in the expected allocation of households to residential locations and to the routes and links of the network, in the vacancies and rents of residential locations and in the congested travel time and cost of each network link. The formulation combines a multinomial logit model of households' location and route choices derived from utility maximization, a binary logit model of house owners' offer decisions derived from profit maximization and the standard model of network congestion. A travel disutility measure (consistent with utility maximization) replaces the standard ‘generalized cost function’. The proof utilizes a non-linear programming formulation which reproduces the simultaneous equilibrium conditions of the behavioral formulation. The stability of the unique equilibrium position is briefly discussed, a computational algorithm is proposed and hints for generalized formulations are provided.     

A theory of residential location decisions of two-worker households

This paper presents a model of the residential location of a household with two members working in separate urban employment centers. A three-dimensional bid-rent surface is developed and compared with the bid-rent surfaces for three other types of land users. The resulting bid-rent surfaces are used to describe the location and shape of the regions where these various types of households will choose to reside in an urban community.     

A simultaneous model of workplace and residential location incorporating job search

The paper develops a model of spatial job search to provide a theory of workplace location with respect to a predetermined place of residence which, the paper argues, is needed to complement the theory of residential location from a predetermined workplace. By concentrating on the role of the skill level of the job seeker, the model distinguishes predictions of the workplace location based on search from those based on commuting considerations. Household survey data from Greater London is analyzed to support the propositions of the search model in the determination of the relationship between the workplace and the household location.     

Racial gaps in the transition to first-time homeownership: The role of residential location

Evidence suggests that African Americans wait longer to transition into first-time homeownership than white households with similar endowments. This paper relies on data from the Panel Study of Income Dynamics (PSID) to examine the contribution of residential location toward the black–white gap in first-time homeownership transitions. For a sample of young renters who first left their parents' home during the period 1978 through 1987, I estimate continuous time duration models that explain racial gaps in rental tenure durations prior to first-time homeownership as a function of individual, household, and location-specific covariates. I find that while several residential location characteristics, particularly those associated with the supply of affordable owner-occupied housing, impinge upon racial gaps in first-time homeownership transitions, most of the racial gap in homeownership transitions would be eliminated if blacks and whites had similar individual and household characteristics.     

An empirical model of residential location and the journey-to-work in a metropolitan area

In this paper we present and estimate a single equation model designed to explain the residential location behaviour of individuals living in a multi-centered metropolitan area. We test the model for heads of households and non-heads of households separately, as well as for the total working population, in order to isolate differences in commuting behaviour between primary and secondary wage earners. The relationships are estimated from 1971 Census, cross-section data using least squares multiple regression. The data pertain to the Toronto Census Metropolitan Area (CMA) and sixty-three designated zones therein.The estimation results reveal that although location-rents prove to be significant in the individual's residential location decision-making process, their effect was limited to discouraging those employed in or near the central business district (CBD) from living close to work. The existence of secondary employment centres did not have the same significant effect in bidding up location-rents. Furthermore, contrary to the standard theory, the results suggest that residential location decisions are made in response to the availability of collective residential opportunities and workers' preferences for specific residential attributes rather than by reference to the “transportation cost—housing cost” trade-off. Among the socio-economic variables, age of the worker is found to be most significant in affecting journey-to-work distance. The results provide some evidence that non-heads are, to a certain extent, more sensitive to urban structural constraints in their commuting behaviour.     

城乡统筹发展的机理与途径——以重庆市为例

我国城乡二元结构特征显著,科学统筹城乡发展意义重大.分析了相关理论对统筹城乡发展的启示,包括发展经济学中的二元经济理论、城市规划理论、共生理论以及区域经济学中的相关理论,以系统的思维和视角阐释了科学统筹城乡发展的机理.以重庆为例,探讨了科学统筹城乡发展的对策:优化对外空间格局和内部空间结构,降低对外交流成本,建立可持续盈利空闻;土地、户籍、社保制度的整体变迁和创新;加强乡镇与企业、智力机构、金融机构对接和城乡间信息对接的组织保障.     

Urban ecology and residential location theories: Application in nigeria's socio-cultural milieu

Urban ecological studies are generally concerned with the spatial distribution of population characteristics, organisations, activities and behaviours across the urban terrain. These spatial distributions are taken to reflect the operation of socio-economic processes. Anglo-American urban ecological investigators had formulated much of the prevailing urban ecological theories of today. These theories were based on studies of their own socio-cultural and economic environments, which were by no means universal. This study, applies the principles of these well-known theories to a different socio-economic and cultural environment—Nigerian, with a view to testing their cross-cultural validity. This is done (i) by testing some empirical data on the city of Lagos, upon some specific propositions embodied in these theories; with a view towards their verification and validation; and (ii) by examining the over-all explanatory power of the theories in accounting for broad urban ecological patterns as revealed by data or information on the study city, and culture. The findings suggest that while similarities in urban ecological patterns in the two environments are discernible in some variables, they significantly differ in others, and even where the patterns appear to be similar, they are explainable by quite different factors. Urban ecological patterns could therefore be said to be culture-specific.     

Intrametropolitan migration: A simultaneous model of employment and residential location of white and black households

This study explores the relationship between the home and job location of the household within a metropolitan area. The model is an extension of the Alonso-Muth framework and allows the household to simultaneously choose its residential and employment location, monthly rent, number of rooms and the type of structure of the dwelling unit, so as to maximize its utility subject to the budget constraint.The data base is the Home Interview Survey conducted in 1965 by the (San Francisco) Bay Area Transportation Study Commission. The coefficients in the simultaneous model are estimated by two-stage least squares. The cross-section sample is stratified by tenure into renters and homeowners; by race into black and white households; and further by position in the life-cycle.The results of the location equations reveal that both the home and job location are responsive to each other which implies that the decentralization of jobs will result in the decentralization of residences for black households. The results of the housing equations imply that black and white households have almost identical elasticity of demand for housing. There is very slight evidence of price discrimination against black households. However, there is evidence that black households do face a geographical segregated market for rental housing.The results of this study argue that the decentralization of population is not due solely to rising incomes and will continue as long as industry decentralizes. Furthermore, governmental policies of increasing the income of central city residents, through subsidies to employers to locate in the central city will have a strong effect: inducing those residents to remain in or move into the central city. Thus, a policy that is meant to alleviate the plight of the city center may only result in strengthening the racial and income split between the suburb and the central city inhabitants.     

Deciding between alternative approaches in macroeconomics

Macroeconomic time-series data are aggregated, inaccurate, non-stationary, collinear and rarely match theoretical concepts. Macroeconomic theories are incomplete, incorrect and changeable: location shifts invalidate the law of iterated expectations and ‘rational expectations’ are then systematically biased. Empirical macro-econometric models are non-constant and mis-specified in numerous ways, so economic policy often has unexpected effects, and macroeconomic forecasts go awry. In place of using just one of the four main methods of deciding between alternative models, theory, empirical evidence, policy relevance and forecasting, we propose nesting ‘theory-driven’ and ‘data-driven’ approaches, where theory-models’ parameter estimates are unaffected by selection despite searching over rival candidate variables, longer lags, functional forms, and breaks. Thus, theory is retained, but not imposed, so can be simultaneously evaluated against a wide range of alternatives, and a better model discovered when the theory is incomplete.     

Urban security from warfare to welfare

Recent mobilization efforts to provide urban security in the American ‘War on Terrorism’ recall the expanding military–industrial complex during the nation’s preparations for the Cold War. This article suggests the current generation of American city leaders can learn much from history. Juxtaposing recent mobilization efforts alongside analogous episodes from the nation’s past reminds us that many powerful economic and political interests are well–served by the unbridled expansion of urban fear. This comparison raises important questions to be asked of current and future domestic urban security measures in the ‘War on Terrorism’. Les récents efforts de mobilisation visant à assurer une sécurité urbaine dans le cadre de la ‘guerre’ américaine contre le terrorisme évoquent le complexe militaro–industriel qui s’était développé pendant les préparatifs nationaux à la Guerre froide. La génération actuelle des dirigeants de villes américaines peut apprendre beaucoup de l’histoire. Juxtaposer ces récentes tentatives de mobilisation aux épisodes analogues du passé national rappelle que, pour beaucoup, les puissants intérêts économiques et politiques se nourrissent de l’essor incontrôlé des ‘peurs urbaines’. Cette comparaison suscite d’importantes interrogations quant aux mesures actuelles et futures en matière de sécurité intérieure urbaine dans le contexte de la ‘guerre contre le terrorisme’.     

Volatility and welfare

This paper explores the relationship between volatility and welfare. Even though households prefer smooth streams of consumption and leisure, welfare can be increasing in the volatility of an exogenous driving force if factor supply is sufficiently elastic. We provide some analytical results for a model without capital, and do some quantitative exercises in a model with capital and a variety of shocks. Welfare is greater in high shock volatility regimes under plausible parameter values. Augmenting the model with features that increase the elasticity of factor supply extends the range of parameters over which higher volatility results in greater welfare.