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Social Interaction and Urban Location Decisions

  • Zackary Hawley


    (Department of Economics, Texas Christian University)

  • Geoffrey Turnbull


    (Department of Finance, University of Central Florida)

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    This paper examines how household social interaction affects housing and location demand in urban settings. The extended Alonso-Muth urban household model shows that the effects on density and location hinge upon the demand relationship between social activities and housing consumption. Stronger tastes for social activities outside the home lead to lower housing demand and decrease demanded distance from the CBD. Stronger tastes for socializing at home have the opposite effects on housing and location demands. The empirical analysis of interaction survey data yields results consistent with the theoretical framework.

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    File Function: First version, 2013
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    Paper provided by Texas Christian University, Department of Economics in its series Working Papers with number 201301.

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    Length: 32 pages
    Date of creation: Jan 2013
    Date of revision:
    Handle: RePEc:tcu:wpaper:201301
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