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Continuous Logit Polycentric City Model

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  • Matthias Wrede

Abstract

This paper analyzes a closed, essentially linear polycentric city with homogenous households who probabilistically select their workplace and residence locations. The study utilizes a continuous logit model to describe household location choices. In contrast to the classic urban model with deterministic location choices, the continuous logit model predicts noticeable direct effects of more than one workplace on land rents, asymmetry of the land rent schedule around secondary business districts, incomplete segregation of citizens who work in different business centers and, therefore, cross commuting, and incomplete segregation of workers and farmers.

Suggested Citation

  • Matthias Wrede, 2014. "Continuous Logit Polycentric City Model," CESifo Working Paper Series 4580, CESifo.
    • Handle: RePEc:ces:ceswps:_4580
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp4580.pdf
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    References listed on IDEAS

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    1. Anas, Alex, 1990. "Taste heterogeneity and urban spatial structure: The logit model and monocentric theory reconciled," Journal of Urban Economics, Elsevier, vol. 28(3), pages 318-335, November.
    2. Ng, Chen Feng, 2008. "Commuting distances in a household location choice model with amenities," Journal of Urban Economics, Elsevier, vol. 63(1), pages 116-129, January.
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    5. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455.
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    7. Hamilton, Bruce W, 1982. "Wasteful Commuting," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 1035-1051, October.
    8. Anas, Alex & Kim, Ikki, 1996. "General Equilibrium Models of Polycentric Urban Land Use with Endogenous Congestion and Job Agglomeration," Journal of Urban Economics, Elsevier, vol. 40(2), pages 232-256, September.
    9. Gabriel Ahlfeldt, 2011. "If Alonso Was Right: Modeling Accessibility And Explaining The Residential Land Gradient," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 318-338, May.
    10. Tscharaktschiew, Stefan & Hirte, Georg, 2010. "How does the household structure shape the urban economy?," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 498-516, November.
    11. Matthias Wrede, 2009. "A Distortive Wage Tax and a Countervailing Commuting Subsidy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(2), pages 297-310, April.
    12. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
    13. Brueckner, Jan K., 1987. "The structure of urban equilibria: A unified treatment of the muth-mills model," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 20, pages 821-845, Elsevier.
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    Cited by:

    1. Vincent Viguié, 2015. "Cross-commuting and housing prices in a polycentric modeling of cities," Policy Papers 2015.03, FAERE - French Association of Environmental and Resource Economists.
    2. Wrede, Matthias, 2015. "A continuous logit hotelling model with endogenous locations of consumers," Economics Letters, Elsevier, vol. 126(C), pages 81-83.

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    More about this item

    Keywords

    urban spatial equilibrium; polycentric city; probabilistic location choices; continuous logit model; cross commuting;
    All these keywords.

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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