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Income and Residential Location: Muth Revisited

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  • Douglas B. Diamond JR

    (North Carolina State University, Raleigh, North Carolina, USA)

Abstract

In Cities and Housing, Muth modeled residential location by income in terms of the conflicting desires for a low price of housing and access to CBD. This paper expands Muth's model to include in the location decision locational amenities other than access. Land values around Chicago are then used to estimate the income elasticities of the bids for access and five other amenities. The results indicate that the value of access may rise more rapidly with income than Muth expected and that, in the absence of other amenities and a durable housing stock, higher income residents would live closer to the CBD than low-income residents. Furthermore, other amenities may be important determinants of residential location patterns.

Suggested Citation

  • Douglas B. Diamond JR, 1980. "Income and Residential Location: Muth Revisited," Urban Studies, Urban Studies Journal Limited, vol. 17(1), pages 1-12, February.
    • Handle: RePEc:sae:urbstu:v:17:y:1980:i:1:p:1-12
    DOI: 10.1080/00420988020080011
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    References listed on IDEAS

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    1. Douglas B. Diamond, Jr., 1980. "The Relationship between Amenities and Urban Land Prices," Land Economics, University of Wisconsin Press, vol. 56(1), pages 21-32.
    2. Wheaton, William C, 1977. "Income and Urban Residence: An Analysis of Consumer Demand for Location," American Economic Review, American Economic Association, vol. 67(4), pages 620-631, September.
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    9. Oates, Wallace E, 1969. "The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 957-971, Nov./Dec..
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    Cited by:

    1. Shaw, John Gordon, 1994. "Transit, Density, and Residential Satisfaction," University of California Transportation Center, Working Papers qt8xk3c9z7, University of California Transportation Center.
    2. Shaw, John G., 1994. "Transit, Density, and Residential Satisfaction," University of California Transportation Center, Working Papers qt5xs0r6vz, University of California Transportation Center.
    3. Jean Cavailhès, 2005. "Le prix des attributs du logement," Économie et Statistique, Programme National Persée, vol. 381(1), pages 91-123.

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