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Social Interaction and Urban Location Decisions

Author

Listed:
  • Zackary Hawley

    () (Department of Economics, Texas Christian University)

  • Geoffrey Turnbull

    () (Department of Finance, University of Central Florida)

Abstract

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
    as

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    File URL: http://www.econ.tcu.edu/RePEc/tcu/wpaper/wp13-01.pdf
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    References listed on IDEAS

    as
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    3. Mossay, P. & Picard, P.M., 2011. "On spatial equilibria in a social interaction model," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2455-2477.
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    6. Zenou, Yves, 2011. "Spatial versus Social Mismatch: The Strength of Weak Ties," Research Papers in Economics 2011:5, Stockholm University, Department of Economics.
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    More about this item

    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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