Location, Housing, and Leisure Demand under Local Employment
Muth's model of CBD-employed household behavior has been successfully extended to include labor/leisure choice in order to deal with the original version's deficient treatment of commuting time. The extension demonstrates how all the basic results of the simpler formulation remain valid. This paper provides a similar extension for the locally employed household variant of Muth's model. The analysis demonstrates a surprising difference between the demand gradient and comparative static results for the locally employed household without leisure choice and the locally employed household with leisure choice not observed for the CBD-employed household model.
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