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DREAM : An Urban Equilibrium Model

Author

Listed:
  • Fabien Leurent

    (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique)

  • Nicolas Coulombel

    (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - UPEM - Université Paris-Est Marne-la-Vallée - ENPC - École nationale des ponts et chaussées)

  • Alexis Poulhès

    (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - UPEM - Université Paris-Est Marne-la-Vallée - ENPC - École nationale des ponts et chaussées)

Abstract

This chapter presents a static model for the equilibrium between supply and demand on an urban housing market. The Disaggregate Residential Equilibrium Assignment Model (DREAM) has two major characteristics: disaggregated representation of both supply and demand, and the role of household income. The housing supply is assumed to be price-elastic in a way that can vary for each location and each housing type. The housing demand is segmented according to the household size and the workplace and the occupation category of the head of the household. In addition, each demand segment presents a statistical distribution of income, treated as a continuous variable (and not a discrete one as is in most applied models). Market equilibrium is characterised first by a set of primal-dual conditions, then by a variational inequality, the continuity of which guarantees the existence of an equilibrium. In the monocentric case, primal-dual conditions are the saddle point conditions of a constrained maximisation programme. Concavity of this programme implies the uniqueness of the equilibrium. We propose a resolution algorithm derived from the assignment of traffic on a transport network. In addition, we present the preliminary results of an application to the Paris region, including the study of a fuel price increase scenario, in order to illustrate the potentialities of the model.

Suggested Citation

  • Fabien Leurent & Nicolas Coulombel & Alexis Poulhès, 2020. "DREAM : An Urban Equilibrium Model," Post-Print hal-05561358, HAL.
    • Handle: RePEc:hal:journl:hal-05561358
    Note: View the original document on HAL open archive server: https://enpc.hal.science/hal-05561358v1
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    References listed on IDEAS

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    1. Alex Anas & Yu Liu, 2007. "A Regional Economy, Land Use, And Transportation Model (Relu‐Tran©): Formulation, Algorithm Design, And Testing," Journal of Regional Science, Wiley Blackwell, vol. 47(3), pages 415-455, August.
    2. David King, 2011. "Developing Densely: Estimating the Effect of Subway Growth on New York City Land Uses," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 4(2), pages 19-32.
    3. Leurent, Fabien, 1993. "Cost versus time equilibrium over a network," European Journal of Operational Research, Elsevier, vol. 71(2), pages 205-221, December.
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