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A Conditional Logit Model of the Role of Local Public Services in Residential Choice

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  • Joseph Friedman

    (Department of Economics and Centre for Urban and Regional Studies, Tel-Aviv University, Israel)

Abstract

This study develops and estimates an econometric model of choice among residential communities. The econometric method employed is maximum-likelihood estimation of a multinomial logit. This makes it possible to examine the effects of local public services and other community attributes on the residential location decisions by families. The model was estimated for six subsamples differing by household size, income, and age of head of household. For most of the subsamples that were examined, the conclusion is that local public services and other community characteristics play only minor roles in determining the residential location choice. The major determinant of residential location is the quantity of housing services that the household can obtain in a community.

Suggested Citation

  • Joseph Friedman, 1981. "A Conditional Logit Model of the Role of Local Public Services in Residential Choice," Urban Studies, Urban Studies Journal Limited, vol. 18(3), pages 347-358, October.
  • Handle: RePEc:sae:urbstu:v:18:y:1981:i:3:p:347-358
    DOI: 10.1080/00420988120080641
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    References listed on IDEAS

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    Cited by:

    1. Dahlberg, M. & Fredriksson, P., 2001. "Migration and Local Public Services," Papers 2001-12, Uppsala - Working Paper Series.
    2. Marois, Guillaume & Lord, Sébastien & Morency, Catherine, 2019. "A mixed logit model analysis of residential choices of the young-elderly in the Montreal metropolitan area," Journal of Housing Economics, Elsevier, vol. 44(C), pages 141-149.
    3. Brülhart, Marius & Bucovetsky, Sam & Schmidheiny, Kurt, 2015. "Taxes in Cities," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1123-1196, Elsevier.
    4. Sigal Kaplan & Yoram Shiftan & Shlomo Bekhor, 2011. "A Semi-Compensatory Residential Choice Model With Flexible Error Structure," ERSA conference papers ersa10p65, European Regional Science Association.
    5. Ying Fan & Charles Ka Yui Leung & Zan Yang, 2022. "Financial conditions, local competition, and local market leaders: The case of real estate developers," Pacific Economic Review, Wiley Blackwell, vol. 27(2), pages 131-193, May.
    6. Peter Berck & Sofia Tano & Olle Westerlund, 2016. "Regional Sorting of Human Capital: The Choice of Location among Young Adults in Sweden," Regional Studies, Taylor & Francis Journals, vol. 50(5), pages 757-770, May.
    7. Earnhart, Dietrich, 2002. "Combining Revealed and Stated Data to Examine Housing Decisions Using Discrete Choice Analysis," Journal of Urban Economics, Elsevier, vol. 51(1), pages 143-169, January.
    8. Schmidheiny, Kurt, 2006. "Income segregation and local progressive taxation: Empirical evidence from Switzerland," Journal of Public Economics, Elsevier, vol. 90(3), pages 429-458, February.
    9. Matz Dahlberg & Matias Eklöf & Peter Fredriksson & Jordi Jofre-Monseny, 2012. "Estimating Preferences for Local Public Services Using Migration Data," Urban Studies, Urban Studies Journal Limited, vol. 49(2), pages 319-336, February.
    10. Sigal Kaplan & Shlomo Bekhor & Yoram Shiftan, 2011. "Development and estimation of a semi-compensatory residential choice model based on explicit choice protocols," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 51-80, August.
    11. Ken Sanford & William Hoyt, 2009. "Is the Grass Greener on the Other Side of the River?: The Choice of Where to Work and Where to Live for Movers," Working Papers 2009-05, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
    12. Dahlberg, Matz & Eklöf, Matias, 2003. "Relaxing the IIA Assumption in Locational Choice Models: A Comparison Between Conditional Logit, Mixed Logit, and Multinomial Probit Models," Working Paper Series 2003:9, Uppsala University, Department of Economics.
    13. Cheol-Joo Cho, 1997. "Joint Choice of Tenure and Dwelling Type: A Multinomial Logit Analysis for the City of Chongju," Urban Studies, Urban Studies Journal Limited, vol. 34(9), pages 1459-1473, August.
    14. Feld, Lars P, 2000. "Tax Competition and Income Redistribution: An Empirical Analysis for Switzerland," Public Choice, Springer, vol. 105(1-2), pages 125-164, October.
    15. Ozturk, Erdogan & Irwin, Elena G., 2001. "Explaining Household Location Choices Using A Spatial Probit Model," 2001 Annual meeting, August 5-8, Chicago, IL 20626, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Martin F. Grace & David L. Sjoquist, 2020. "The Effect of Taxes on the Location of Property‐Casualty Insurance Firms," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 87(4), pages 1035-1062, December.
    17. Bulent Uyar & Kenneth H. Brown, 2005. "Impact of Local Public Services and Taxes on Dwelling Choice within a Single Taxing Jurisdiction: A Discrete Choice Model," Journal of Real Estate Research, American Real Estate Society, vol. 27(4), pages 427-444.
    18. Mario du Preez & Michael C. Sale, 2012. "Determining the impact of low-cost housing development on nearby property prices using discrete choice analysis," Working Papers 265, Economic Research Southern Africa.
    19. Feld, Lars P. & Kirchgassner, Gebhard, 2001. "Income tax competition at the State and Local Level in Switzerland," Regional Science and Urban Economics, Elsevier, vol. 31(2-3), pages 181-213, April.
    20. Asmae AQZZOUZ & Nathalie PICARD, 2023. "Residential Mobility And Life Cycle: Identifying The Role Of Local Taxes," Working Papers of BETA 2023-43, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    21. Andrejs Skaburskis, 1999. "Modelling the Choice of Tenure and Building Type," Urban Studies, Urban Studies Journal Limited, vol. 36(13), pages 2199-2215, December.
    22. Aiga Stokenberga, 2019. "How family networks drive residential location choices: Evidence from a stated preference field experiment in Bogotá, Colombia," Urban Studies, Urban Studies Journal Limited, vol. 56(2), pages 368-384, February.

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