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Bid Rents under Unemployment Risk: Delayed versus Timeless Uncertainty

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  • Zenou, Yves
  • Eeckhoudt, Louis

Abstract

In this paper, we analyze the impact of uncertainty on the level and properties of the bid rent function. We show that these properties strongly depend upon the way in which uncertainty is introduced into the model (delayed versus timeless uncertainty). We also investigate the implication of income uncertainty for the city equilibrium.
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(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Zenou, Yves & Eeckhoudt, Louis, 1997. "Bid Rents under Unemployment Risk: Delayed versus Timeless Uncertainty," Journal of Urban Economics, Elsevier, vol. 42(1), pages 42-63, July.
    • Handle: RePEc:eee:juecon:v:42:y:1997:i:1:p:42-63
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    1. Papageorgiou, Yorgos Y. & Pines, David, 1985. "The impact of transportation cost uncertainty on urban structure," Regional Science and Urban Economics, Elsevier, vol. 18(2), pages 247-260, May.
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    5. Zenou, Yves & Smith, Tony E., 1995. "Efficiency wages, involuntary unemployment and urban spatial structure," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 547-573, August.
    6. Hayne E. Leland, 1968. "Saving and Uncertainty: The Precautionary Demand for Saving," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(3), pages 465-473.
    7. Dreze, Jacques H. & Modigliani, Franco, 1972. "Consumption decisions under uncertainty," Journal of Economic Theory, Elsevier, vol. 5(3), pages 308-335, December.
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    Cited by:

    1. Zenou, Yves, 2003. "Efficiency Wages, Urban Unemployment and Housing Consumption," CEPR Discussion Papers 4153, Centre for Economic Policy Research.
    2. Yves Zenou, 1996. "Marché du travail et économie urbaine. Essai d'intégration," Revue Économique, Programme National Persée, vol. 47(2), pages 263-288.
    3. Güven, Gökhan, 2026. "Stochastic congestion pricing and urban spatial structure in a monocentric city: A risk-adjusted equilibrium model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 682(C).

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    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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