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Preferences for Housing, Jobs, and Commuting: A Mixed Logit Analysis

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Author Info
Jan Rouwendal
Erik Meijer

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Abstract

This paper reports stated preferences of Dutch workers for combinations of housing, employment, and commuting. The analysis uses standard logit models as well as mixed logit models. Estimation results offer insights into the relative importance of various aspects of housing, employment, and commuting. Households dislike commuting and the value of commuting time implied by the model is high in comparison to the wage rate. Nevertheless, preferences for some housing attributes are strong enough to make substantially longer commuting acceptable to most workers. Of special interest is the strong preference for living in small-or medium-size cities, especially among two income households. Using a mixed logit model instead of a standard logit model results in a substantial improvement of the loglikelihood, reflecting the importance of heterogeneity among respondents. If no individual characteristics are incorporated into the model, the mixed logit implies substantially lower average monetary evaluations of most attributes. These differences are much smaller if some individual characteristics are incorporated into the model. Copyright 2001 Blackwell Publishers

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/0022-4146.00227
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Regional Science.

Volume (Year): 41 (2001)
Issue (Month): 3 ()
Pages: 475-505
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Handle: RePEc:bla:jregsc:v:41:y:2001:i:3:p:475-505

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  1. Mihails Hazans, 2005. "Does Commuting Reduce Wage Disparities?," Labor and Demography 0509012, EconWPA. [Downloadable!]
    Other versions:
  2. Jos van Ommeren & Michiel van Leuvensteijn, 2002. "New Evidence of the Effect of Transaction Costs on Residential Mobility," Tinbergen Institute Discussion Papers 02-117/3, Tinbergen Institute. [Downloadable!]
    Other versions:
  3. Carlos Barros & Isabel Proenca & Jose Cabral Vieira, 2005. "Low-wage employment in Portugal: a mixed logit approach," Labor and Demography 0508001, EconWPA. [Downloadable!]
    Other versions:
  4. J. Elhorst & Jan Oosterhaven, 2006. "Forecasting the impact of transport improvements on commuting and residential choice," Journal of Geographical Systems, Springer, vol. 8(1), pages 39-59, March. [Downloadable!] (restricted)
  5. PERALTA, Susana, 2004. "Political support for tax decentralisation," CORE Discussion Papers 2004024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
  6. Isacsson, Gunnar & Swärdh, Jan-Erik, 2007. "An empirical on-the-job search model with preferences for relative earnings: How high is the value of commuting time?," Working Papers 2007:12, Swedish National Road & Transport Research Institute (VTI). [Downloadable!]
  7. Irwin, Elena G. & Roe, Brian & Morrow-Jones, Hazwl, 2002. "The Effects Of Farmland, Farmland Preservation And Other Neighborhood Amenities On Proximate Housing Values: Results Of A Conjoint Analysis Of Housing Choice," 2002 Annual meeting, July 28-31, Long Beach, CA 19611, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Rodríguez Hernández, José E. & Barrios García, Javier A., 2007. "Estimación Microeconométrica de la Tenencia y Demanda de Vivienda en España según la Localización/Microeconometric Estimation of Tenune and Housing Demand in Spain Accoding to Location," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 25, pages 453-484, Abril. [Downloadable!] (restricted)
  9. Jan Oosterhaven & J. Paul Elhorst, 2003. "Effects of Transport Improvements on Commuting and Residential Choice," ERSA conference papers ersa03p29, European Regional Science Association. [Downloadable!]
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