Microeconomic model of residential location incorporating life cycle and social expectations

Héctor A. López-Ospina*, Francisco J. Martínez, Cristián E. Cortés

*Autor correspondiente de este trabajo

Producción científica: Contribución a una revistaArtículorevisión exhaustiva

14 Citas (Scopus)


This paper is focused on the dynamics of residential location decisions based on the microeconomic theory of urban land use, in which we assume that each property is assigned to the agent with the highest bid. The agents' behavior includes expectations of their future based on the life cycle or social influence processes, which are anticipated or solved using a hypothesis of imitation of the behavior of other households currently living in those situations. Relocation decisions are then modeled, incorporating expected utilities by means of transition probabilities among households. An imitation multi-objective bid function is postulated for each alternative location depending on the expected income per unit of time, the current household value of amenities and the expected value obtained by the imitated agent in this location. A multinomial logit model is assumed to calculate the location equilibrium, where willingness to pay is determined by dwelling characteristics and spatial socioeconomic segregation (location externalities). Numerical examples and simulations are presented using linear bid functions to explain the proposed modeling approach and the impact of imitation on the dynamics of residential segregation.

Idioma originalInglés
Páginas (desde-hasta)33-43
Número de páginas11
PublicaciónComputers, Environment and Urban Systems
EstadoPublicada - 1 ene. 2016
Publicado de forma externa

Nota bibliográfica

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© 2015 Elsevier Ltd.


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