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Explaining Household Location Choices Using A Spatial Probit Model

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  • Ozturk, Erdogan
  • Irwin, Elena G.
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    Abstract

    A spatial probit model is estimated to test the influence of public services and neighborhood characteristics on relocation decisions of homebuyers in the Columbus, Ohio region. The model explicitly accounts for the spatial error autocorrelation that arises due to unobserved similarities across alternatives, which, if uncontrolled, results in inconsistent parameter estimates.

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    File URL: http://purl.umn.edu/20626
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20626.

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    Date of creation: 2001
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    Handle: RePEc:ags:aaea01:20626

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    Keywords: Consumer/Household Economics;

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    1. David M. Brasington, 1999. "Which Measures of School Quality Does the Housing Market Value?," Journal of Real Estate Research, American Real Estate Society, vol. 18(3), pages 395-414.
    2. Nechyba, Thomas J. & Strauss, Robert P., 1998. "Community choice and local public services: A discrete choice approach," Regional Science and Urban Economics, Elsevier, vol. 28(1), pages 51-73, January.
    3. Rubinfeld, Daniel L & Shapiro, Perry & Roberts, Judith, 1987. "Tiebout Bias and the Demand for Local Public Schooling," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 426-37, August.
    4. Pinkse, Joris & Slade, Margaret E., 1998. "Contracting in space: An application of spatial statistics to discrete-choice models," Journal of Econometrics, Elsevier, vol. 85(1), pages 125-154, July.
    5. Hamilton, Bruce W, 1976. "The Effects of Property Taxes and Local Public Spending on Property Values: A Theoretical Comment," Journal of Political Economy, University of Chicago Press, vol. 84(3), pages 647-50, June.
    6. Carlos Arias & THOMAS L. COX, 1999. "Maximum Simulated Likelihood: A Brief Introduction for Practitioners," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 421, Wisconsin-Madison Agricultural and Applied Economics Department.
    7. BOLDUC, Denis & FORTIN, Bernard & GORDON, Stephen, 1995. "Multinomial Probit Estimation of Spatially Interdependent Choices: an Empirical Comparison of Two New Techniques," Cahiers de recherche 9508, Université Laval - Département d'économique.
    8. Hoyt, William H. & Rosenthal, Stuart S., 1997. "Household Location and Tiebout: Do Families Sort According to Preferences for Locational Amenities?," Journal of Urban Economics, Elsevier, vol. 42(2), pages 159-178, September.
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