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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
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    File URL: http://www.econ.tcu.edu/RePEc/tcu/wpaper/wp13-01.pdf
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    Cited by:

    1. is not listed on IDEAS
    2. Dongshin Kim & Youngme Seo & Julia Freybote, 2021. "Urbanity, Financial Crisis and the Timing of Homebuying Decisions by Young Households," The Journal of Real Estate Finance and Economics, Springer, vol. 62(4), pages 481-507, May.

    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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