Microeconomic Formulation and Estimation of a Residential Location Choice Model: Implications for the Value of Time

Abstract We formulate a microeconomic model of residential location choice behavior as an aggregate of the individual behaviors of household members, subject to individual time constraints and a common income budget. A simplified version of the model is estimated from stated preference rank‐order data, yielding a function that may be interpretated as a conditional indirect utility function. We consider Box‐Tukey transformations, segmentation by income class, and a consistent treatment of data at different rank depths using the simultaneous mixed‐estimation method. Measures of the household's willingness‐to‐pay (through rents) for reducing travel times to work and study in the short run, are interpreted as subjective values of time and compared with such values derived from mode choice models. Our results are plausible, and consistent with recent findings showing that the short‐run benefits of transport projects derived by transport models are larger than benefits measured at the land use system.     

MIGRATION AS A WAY TO DIVERSIFY: EVIDENCE FROM RURAL TO URBAN MIGRATION IN THE U.S.

This paper extends the utility maximization model of migration by introducing income and unemployment‐related uncertainties as determinants of utility, and analyzes the effects of the informational advantages of migrants. The paper maintains that migration would expand an individual's economic choices and opportunities and allow diversification. Consequently, diversification advantages influence the location decisions of migrants, an effect captured by the correlation of incomes at the origin and potential destinations. We use the discrete choice model based on random utility maximization as the framework for our empirical investigation of migration from the United States rural to urban counties. This paper takes advantage of an equivalent relation between the conditional logit model and Poisson regression to study the migration decisions using aggregate data among a large set of spatial alternatives. The results show that the diversification concerns have significant effects on location decisions of the rural‐urban migrants in the United States.     

Housing Choice in a Regulated Market: A Nested Multinomial Logit Analysis

The paper integrates several important elements of the institutionalized and regulated nature of the housing market and analyzes the relationship between household type and housing choice in Vienna within a nested multinomial logit framework. In particular, the concept of household specific choice sets is used to account for institutional, informational and income-based constraints of the choice process. Government subsidies (such as housing and rent allowances, non-interest-bearing state loans) are explicitly taken into account in the definition of variables. Housing choice is considered in three stages: the choice of a dwelling unit given dwelling type and residential zone, the choice of a dwelling type given residential zone, and the marginal choice of a residential zone. The coefficients are derived by means of a sequential ML-procedure. The empirical results clearly indicate that demographic variables have significant impacts on housing choice behavior. Income as a single explanatory variable as well as its interacting with size measures and the quality of the house are found to be important criteria for dwelling unit choice, as housing cost variables for dwelling type choice behavior. The dwelling unit and dwelling type choice submodels fit reasonably well, whereas the residential zone model is less successful.     

Consideration of Proximity in Selection of Residential Location by Science and Technology Workers: Case Study of Hsinchu,Taiwan

The Hsinchu district has been one of the most rapidly developing areas of Taiwan during the past decade. The rise of the Hsinchu Science-based Industrial Park (HSIP) has significantly influenced population growth and living environment in the Hsinchu district. To obtain new knowledge via knowledge proliferation activities that occur following knowledge innovation, science and technology workers have been established based on the proximity of informal social network interactions and the existence of a common culture. Based on social, identified and cognitive proximities, this investigation examines whether science and technology workers directly assess their living environment while considering housing purchases, seeking information and making residential location decisions. This investigation employs regression analysis to examine the correlation between individual proximity factors and spatial proximity, based on the hypothesis that individual proximity influences residential location choices of science and technology communities. The study results indicate that the housing choice behaviours of the science and technology community follow two proximity paths, that is, internal and external proximity factors. Consequently, the pull created by individual proximity has slowed the spatial expansion of the Hsinchu region.     

Influence of Race on Household Residential Utility

Residential location choice models are an important tool employed by urban geographers, planners, and transportation engineers for understanding household residential location behavior and for predicting future residential location activity. Racial segregation and residential racial preferences have been studied extensively using a variety of analysis techniques in social science research, but racial preferences have generally not been adequately incorporated into residential location choice models. This research develops residential location choice model specifications with a variety of alternative methods of addressing racial preferences in residential location decisions. The research tests whether social class, family structure, and in‐group racial preferences are sufficient to explain household sensitivity to neighborhood racial composition. The importance of the interaction between the proportion of in‐group race neighbors and other‐race neighbors is also evaluated. Models for the San Francisco Bay metropolitan area are estimated and evidence of significant avoidance behavior by households of all races is found. The results suggest that social class differences, family structure differences, and in‐group racial preferences alone are not sufficient to explain household residential racial preference and that households of all races practice racial avoidance behavior. Particularly pronounced avoidance of black neighbors by Asian households, Hispanic neighbors by black households, and Asian neighbors by white households are found. Evidence of a decrease in household racial avoidance intensity in neighborhoods with large numbers of own‐race neighbors is also found.     

TRAFFIC CONGESTION,POLYCENTRICITY, AND INTRAURBAN FIRM LOCATION CHOICES: A NESTED LOGIT MODEL FOR THE LOS ANGELES METROPOLITAN AREA

This study empirically investigates traffic congestion effects on agglomeration through the lens of firm location decisions. A discrete choice model is applied to examine new establishments’ location choices within the Los Angeles metropolitan area. Employment centers are defined as the choice set to explore the nature and role of intraurban agglomerations. The results show that metro‐wide congestion negatively affects the location choices of firms in the high‐order office‐related activities, while local congestion have positive impacts on those firms’ location decisions. In contrast, firms in production‐related activities are positively influenced by regional congestion but are negatively affected by local congestion levels.     

国内外城市居民职住空间关系研究进展和展望

城市居民职住空间关系是指城市居民居住地和工作地之间的社会空间关系,是城市空间结构的重要研究内容。体制转型时期中国城市居民职住空间关系正在经历着翻天覆地的变化。本文主要从职住空间关系研究学派、职住空间平衡和城市通勤、居住选择和居住空间分异等方面对国内外相关研究进行述评,认为国内相关研究应注重社会调查,加强个体层面的研究,从体制转型和个体社会经济特征等角度寻求城市居民职住空间关系及其演化的形成机制,并注重特殊群体,如外来人口、城市贫困人口和原单位制社区居民等社会群体的职住空间关系和社会空间后果研究。     

ON FRONTIER SPECIFICATIONS FOR DISCRETE BINARY CHOICE ANALYSIS

ABSTRACT. In estimating a discrete choice model one is actually estimating the parameters of a conditional indirect utility function. I explore the consequences of recognizing that this function is a maximum-value (frontier) function. I formulate several frontier choice models and, using a pilot empirical study of transportation mode choice, compare the resulting estimates with those of the conventional logit specification. Most strikingly, it appears that the values of time implied by the frontier models are substantially below those of the logit model. This implies that policies designed to improve travel times may be of less value to consumers than is conventionally believed.     

On the Logit Approach to Competitive Facility Location

The random utility model in competitive facility location is one approach for estimating the market share captured by a retail facility in a competitive environment. However, it requires extensive computational effort for finding the optimal location for a new facility because its objective function is based on a k -dimensional integral. In this paper we show that the random utility model can be approximated by a logit model. The proportion of the buying power at a demand point that is attracted to the new facility can be approximated by a logit function of the distance to it. This approximation demonstrates that using the logit function of the distance for estimating the market share is theoretically founded in the random utility model. A simplified random utility model is defined and approximated by a logit function. An iterative Weiszfeld-type algorithm is designed to find the best location for a new facility using the logit model. Computational experiments show that the logit approximation yields a good location solution to the random utility model.     

ANALYSIS OF A DYNAMIC RESIDENTIAL LOCATION CHOICE MODEL WITH TRANSACTION COSTS*

ABSTRACT. This paper incorporates transaction costs in a residential location choice model. An individual's choice is assumed to be an outcome of a two-stage process: a decision to change, or to undertake a transaction and, conditional on a change occurring, a choice of a new alternative. The dynamic choice model is aggregated to yield a Markovian model of residential location patterns. It is shown that recent contributions to dynamical urban modeling correspond to special cases of the deterministic version of this model. The Markovian model is used in a theoretical analysis of the influence of transaction costs on the properties of the stationary state. The effects of residential mobility rates and of interdependencies among individuals, caused by supply-side and density-related interactions, are also analyzed. It is shown how these dynamical factors modify the stationary state, thereby demonstrating the type of errors which may occur with static models that omit them.     

A MANAGERIAL MODEL OF THE EFFECT OF PRODUCT MARKET STRUCTURE ON FIRM LOCATION*

ABSTRACT. This paper develops a model of firm location choice based on managerial theory of discretionary behavior. Specifically, it is assumed that the management of the firm maximizes a utility function which incorporates profits and location-specific amenities. As the firm moves from one prospective location to another, it faces a profit-amenity constraint imposed by market conditions. The optimal location decision is derived by maximizing the utility function subject to this market-imposed constraint. After examining the properties of the optimal solution, the impact of various changes in product market structure (including changes from a contestible markets perspective) on the location decision is investigated. A major finding is that the impact of a change in market structure depends upon the nature of the structure change and upon the substitution and income effects induced by the structural change.     

HAPPY IN THE HOOD? THE IMPACT OF RESIDENTIAL SEGREGATION ON SELF‐REPORTED HAPPINESS

Previous research consistently finds that racially based residential segregation is associated with poor economic, health, and social outcomes. The purpose of this paper is to explore the relationship between residential segregation and self‐reported happiness. Using panel data from the National Survey of Families and Households (NSFH), we begin by estimating ordinary least squares (OLS) regressions of happiness on a measure of MSA‐level segregation, controlling for a rich set of individual, neighborhood, regional, and state characteristics. The OLS results suggest that increased segregation is associated with a reduction in happiness among blacks. To deal more appropriately with the potential endogeneity of location choice, we extend the methodology to fully exploit the panel structure of the NSFH and incorporate individual fixed effects into the happiness equation. Contrary to the OLS results, our fixed effects estimates imply that blacks are happier in more segregated metropolitan areas. The paper discusses the implications of these results within the context of current integration policies.     

城市住宅的生态区位探析

在评析传统的住宅经济区位论的基础上,文章提出了居住环境的生态价值对住宅区位的重要意义,进而从经济因素和环境因素两个角度提出了城市住宅的生态区位模型。并以上海市为例分析了环境生态价值对商品住宅价格的影响,以及对未来住宅区位的几点启示。     

我国大学生就业城市选择意愿及其影响因素分析

引导大学生合理的就业流动是促进各类城市协调发展的有效途径。本文以不同类型的就业城市为研究对象,通过全国7个城市的1600余份调查问卷,利用多项Logit模型分析了我国大学生就业城市的选择意愿及影响因素。研究表明,大学生倾向以自身生源地为界限对劳动市场的地域进行二元划分,职业发展机遇和家庭因素在就业地的选择中最为重要,地区特质和自然生态环境的影响最弱,生源地和个人观念都与就业地的选择显著相关。在此基础上提出引导大学生就业流动的政策建议。     

A NON-GAUSSIAN TIME SERIES ANALYSIS OF RURAL RETAIL BUSINESS COUNTS*

ABSTRACT. Determinants of the number of retail firms serving a rural area have been investigated by drawing on demand threshold analysis to analyze cross-sectional data. The relevance of such studies to an individual community may be limited if it is characterized by differential levels or unique types of economic activity. Alternatively, conducting the analysis using time-series data on an individual community may lead to problems associated with non-normal and nonstationary data. These problems are addressed by formulating a state-space model of time-series count data. The discrete, nonnegative nature of count data is accommodated by using a conjugate prior for the Poisson location parameter. A guide function is used to link the prior to the state vector and Bayes rules are used for updating.     

Telecommunication Media Choice Behavior in Academia: An Austrian-Swiss Comparison

A general framework to analyze communication media choice behavior in the university setting is proposed which integrates a stated preference experimental design procedure into a discrete choice modeling framework. The framework is empirically tested using hypothetical choice experiments in which traditional mail, courier mail, telephone, facsimile, and electronic mail services were choice options to carry out information communication tasks. For this purpose face-to-face interviews were conducted in six universities in Austria and Switzerland. The choice modeling approach developed emphasizes the influence of communication context specific characteristics, individual and organizational characteristics of the communication initiator as well as the individual's perceptions and feelings about the communication media on the formation of preferences. Empirical results are presented using stated preference models of communication media choice behavior for a series of communication situations. Specific emphasis is laid on cross-national differences in choice behavior.     

MODELING RESIDENTIAL CHOICE*

ABSTRACT. This paper presents a new approach in the modeling of residential choices for simulation purpose. The originality of the approach resides in the way recent developments in stochastic choice models are combined with deterministic mathematical programming which allows to define an equilibration process for simulation. In that respect, ex ante probabilities of housing choice based on random utility maximization under perceived constraints are distinguished from ex post probabilities of choice that respect supply constraints. The proposed model is tested on the Montreal Metropolitan Region, and a few simulation results based on a scenario of population aging and decrease in household size are analyzed.     

Best practices for measuring community resources across Canada: A comparison of coding classifications

Social scientists, geographers, criminologists, and health scientists are often tasked with finding data to best capture the impact of “community context” on individual outcomes, including residential services, physical resources, and social institutions. One outlet for such data in Canada is Digital Map Technologies Inc. (DMTI) Spatial, which offers a national repository of over one million businesses and recreational points of interest. The database is generated through CanMap Streetfiles, which includes geocodes of each point's precise location. These data are available to researchers from their university data library and Esri Canada, but primarily available to private sector and government markets. That said, the goal of the current paper is to encourage researchers to access this rich yet under-utilized data source. Each service, business, or resource in the DMTI Spatial database is assigned to a respective category using Standard Industrial Classification codes and North American Industrial Classification System codes. It is not clear, however, which is the more reliable coding criteria. We provide an overview of our review of DMTI Spatial data and take-away suggestions for using this valuable resource for future research on meso-level residential markers.     

开发区社区居民日常活动空间研究——以北京经济技术开发区为例

基于社区问卷调查数据,从行为主义视角对北京经济技术开发区社区居民的通勤、购物、就学、就医、休闲等日常活动空间开展实证研究,刻画开发区职住分离、购物行为的空间指向性,以及居民就学、就医和休闲行为的空间分配特征。继而,基于加入空间变量的消费者效用函数,结合转型期城市空间重构背景,重点从居民需求、市场供给和政府供给相互作用的角度对开发区社区居民日常活动空间特征进行解释,并概括出其形成的综合机制模式。研究发现,距离、业态偏好、对服务设施质量的要求,以及交通方式改善带来居民需求变动,与市场供给的空间分布、政府供给的相对短缺共同影响,塑造了社区居民的日常活动空间。     

HOUSEHOLD LOCATION AND RACE: A 20‐YEAR RETROSPECTIVE*

ABSTRACT In research conducted some 20 years ago, we elucidated the starkly lower suburbanization propensities of black households in the Washington, D.C. metropolitan area. The paper showed that simulated closure of large socio‐economic gaps between blacks and whites did little to diminish prevailing high levels of residential segregation or otherwise enhance moves by black households to areas of educational, employment, and housing opportunity. Some two decades later and in the wake of significant urban evolution, this paper assesses anew racial variations in residential location choice. Results of the multinomial logit (MNL) analysis indicate large, persistent racial differentials in intrametropolitan residential location choice. While black location choice in 2000 was relatively more dispersed than in 1980, it remained remarkably concentrated in D.C. and Prince George's County. As in our prior analysis, results showed that large simulated gains in black economic and educational status had little effect on prevailing racial segregation. These findings underscore the ongoing, limited access of black households to schooling, employment, and homeownership opportunities available outside traditional areas of settlement. In marked contrast, the locational choices of Latino and immigrant households bore greater similarity to those of whites and were more sensitive to improvements in socio‐economic status.