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A Cellular Automata Simulation of the 1990s Russian Housing Privatization Decision

Author

Listed:
  • Maria Plotnikova

    (Department of Economics, University of Reading)

  • Chokri Dridi

    (Department of Rural Economy, University of Alberta)

Abstract

The study uses a computational approach to study the phenomenon of housing privatization in Russia in the 1990s. As part of the housing reform flats in multi-family buildings were offered to their residents free of payment. Nevertheless rapid mass housing privatization did not take place. While this outcome admits a number of explanations this analysis emphasizes the fact that the environment in which the decision-making households were operating had a high degree of uncertainty and imposed a high information-processing requirement on the decision-makers. Using the bounded rationality paradigm, the study builds a case for a cellular automata simulation of household decision-making in the context of housing privatization reforms in Russia in the 1990s. Cellular automata is then used to simulate a household's decision to become the owner of its dwelling.

Suggested Citation

  • Maria Plotnikova & Chokri Dridi, 2010. "A Cellular Automata Simulation of the 1990s Russian Housing Privatization Decision," Economics Discussion Papers em-dp2010-05, Department of Economics, University of Reading.
    • Handle: RePEc:rdg:emxxdp:em-dp2010-05
    as

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    File URL: http://www.reading.ac.uk/web/FILES/economics/emdp2010086.pdf
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    References listed on IDEAS

    as
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    3. Caruso, Geoffrey & Peeters, Dominique & Cavailhes, Jean & Rounsevell, Mark, 2007. "Spatial configurations in a periurban city. A cellular automata-based microeconomic model," Regional Science and Urban Economics, Elsevier, vol. 37(5), pages 542-567, September.
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    Keywords

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    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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