Household behavior under income uncertainty in a monocentric urban area

For a household living outside of but commuting to and from the CBD of an urban area and experiencing income uncertainty, housing consumption and location (distance from the CBD) are inversely related to the probability of unemployment and directly related to the level of unemployment compensation under fairly unrestrictive assumptions. Under more restrictive assumptions, it is found that these variables are inversely related to housing price and transportation costs. Finally, income compensation causes housing consumption and location to be directly related to the probability of unemployment and the level of unemployment compensation.