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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)


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.

Suggested Citation

  • Zackary Hawley & Geoffrey Turnbull, 2013. "Social Interaction and Urban Location Decisions," Working Papers 201301, Texas Christian University, Department of Economics.
  • Handle: RePEc:tcu:wpaper:201301

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    File Function: First version, 2013
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    References listed on IDEAS

    1. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    2. Mahmudul Anam & Shin--Hwan Chiang, 2003. "Intraindustry Trade in Identical Products: a Portfolio Approach," Review of International Economics, Wiley Blackwell, vol. 11(1), pages 90-100, February.
    3. World Bank, 2004. "World Development Indicators 2004," World Bank Publications, The World Bank, number 13890.
    4. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
    5. Greenhut, Melvin L & Ohta, Hiroshi & Sailors, Joel, 1985. "Reverse Dumping: A Form of Spatial Price Discrimination," Journal of Industrial Economics, Wiley Blackwell, vol. 34(2), pages 167-181, December.
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    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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