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Cultural heritage and the location choice of Dutch households in a residential sorting model

  • Mark van Duijn
  • Jan Rouwendal

Local amenities are an important factor in the location choice of households. Heterogeneity in preferences of households tends to sort households over different locations which satisfy best their preferences given their constraints. In this paper, we analyze the effect of cultural heritage on the location choice of households using a residential sorting model. Cultural heritage is often a determining factor of the specific atmosphere of a location and is valued as such by its residents. Since the attractiveness of a residential location may be affected by amenities in the surrounding locations, spatial econometrics is used to deal with these interdependencies. Our model accounts for unobserved characteristics of locations, heterogeneity of households and spatial correlation between the observed (and unobserved) attractiveness of locations. The results show, for instance, that the willingness to pay of highly educated households to reside in municipalities close to a high concentration of cultural heritage is higher than other types of households.

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Article provided by Oxford University Press in its journal Journal of Economic Geography.

Volume (Year): 13 (2013)
Issue (Month): 3 (May)
Pages: 473-500

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Handle: RePEc:oup:jecgeo:v:13:y:2013:i:3:p:473-500
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  1. Allen Klaiber, H. & Phaneuf, Daniel J., 2010. "Valuing open space in a residential sorting model of the Twin Cities," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 57-77, September.
  2. J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar.
  3. Patrick Bayer & Robert McMillan & Kim Rueben, 2004. "An Equilibrium Model of Sorting in an Urban Housing Market," NBER Working Papers 10865, National Bureau of Economic Research, Inc.
  4. Kelejian, Harry H. & Prucha, Ingmar R., 2010. "Specification and estimation of spatial autoregressive models with autoregressive and heteroskedastic disturbances," Journal of Econometrics, Elsevier, vol. 157(1), pages 53-67, July.
  5. Murdock, Jennifer, 2006. "Handling unobserved site characteristics in random utility models of recreation demand," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 1-25, January.
  6. Gerald Carlino, 2009. "Beautiful city," Business Review, Federal Reserve Bank of Philadelphia, issue Q3, pages 10-17.
  7. G�ran Therborn & K.C. Ho, 2009. "Introduction," City, Taylor & Francis Journals, vol. 13(1), pages 53-62, March.
  8. David M. Drukker & Peter Egger & Ingmar R. Prucha, 2013. "On Two-Step Estimation of a Spatial Autoregressive Model with Autoregressive Disturbances and Endogenous Regressors," Econometric Reviews, Taylor & Francis Journals, vol. 32(5-6), pages 686-733, August.
  9. Nicolai V. Kuminoff & V. Kerry Smith & Christopher Timmins, 2010. "The New Economics of Equilibrium Sorting and its Transformational Role for Policy Evaluation," NBER Working Papers 16349, National Bureau of Economic Research, Inc.
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