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An urban general equilibrium model with multiple household structures and travel mode choice

  • Tscharaktschiew, Stefan
  • Hirte, Georg

Households in real cities are heterogeneous regarding their size and composition. An aspect usually neglected in urban models used to study economic and policy issues that arise in today's cities. We develop an urban general equilibrium model that takes a more complex household structure explicitly into account. The model is based on the single consumer type model of Anas and Xu (1999) or Anas and Rhee (2006) and treats the interactions of urban product, labor and land markets as well as linkages between city firms and different consumer types living in different household structures. Households differ not only in endowments, preferences and their valuation in regard to different travel modes, but also in size and the composition regarding their members. The implementation of a more complex household structure then allows studying a broad range of further urban economic issues, which treat different household structures differently.

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Paper provided by Dresden University of Technology, Faculty of Business and Economics, Department of Economics in its series Dresden Discussion Paper Series in Economics with number 06/09.

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Date of creation: 2009
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Handle: RePEc:zbw:tuddps:0609
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01062 Dresden

Phone: ++49 351 463 2196
Fax: ++49 351 463 7739
Web page: http://www.tu-dresden.de/wiwi/
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  1. Richard Arnott & Alex Anas & Kenneth Small, 1997. "Urban Spatial Structure," Boston College Working Papers in Economics 388., Boston College Department of Economics.
  2. Joseph S. DeSalvo & Mobinul Huq, 2005. "Mode Choice, Commuting Cost, and Urban Household Behavior," Journal of Regional Science, Wiley Blackwell, vol. 45(3), pages 493-517.
  3. Anas, Alex & Rhee, Hyok-Joo, 2006. "Curbing excess sprawl with congestion tolls and urban boundaries," Regional Science and Urban Economics, Elsevier, vol. 36(4), pages 510-541, July.
  4. Anderson, Simon Peter & de Palma, Andre & Thisse, Jacques-Francois, 1988. "A Representative Consumer Theory of the Logit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(3), pages 461-66, August.
  5. Anas, Alex & Xu, Rong, 1999. "Congestion, Land Use, and Job Dispersion: A General Equilibrium Model," Journal of Urban Economics, Elsevier, vol. 45(3), pages 451-473, May.
  6. Edward L. Glaeser, Jed Kolko, and Albert Saiz, 2001. "Consumer city," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 27-50, January.
  7. Wheaton, William C., 2004. "Commuting, congestion, and employment dispersal in cities with mixed land use," Journal of Urban Economics, Elsevier, vol. 55(3), pages 417-438, May.
  8. Brueckner, Jan K. & Selod, Harris, 2006. "The political economy of urban transport-system choice," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 983-1005, August.
  9. Anas, Alex & Rhee, Hyok-Joo, 2007. "When are urban growth boundaries not second-best policies to congestion tolls?," Journal of Urban Economics, Elsevier, vol. 61(2), pages 263-286, March.
  10. Small, Kenneth A. & Song, Shunfeng, 1992. ""Wasteful" Commuting: A Resolution," University of California Transportation Center, Working Papers qt5142n2ts, University of California Transportation Center.
  11. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  12. White, Michelle J., 1988. "Location choice and commuting behavior in cities with decentralized employment," Journal of Urban Economics, Elsevier, vol. 24(2), pages 129-152, September.
  13. Madden, Janice Fanning, 1980. "Urban Land Use and the Growth in Two-Earner Households," American Economic Review, American Economic Association, vol. 70(2), pages 191-97, May.
  14. Curran, Christopher & Carlson, Leonard A. & Ford, David A., 1982. "A theory of residential location decisions of two-worker households," Journal of Urban Economics, Elsevier, vol. 12(1), pages 102-114, July.
  15. Sergio R. Jara-Diaz & Cristián A. Guevara, 2003. "Behind the Subjective Value of Travel Time Savings," Journal of Transport Economics and Policy, University of Bath, vol. 37(1), pages 29-46, January.
  16. White, Michelle J., 1999. "Urban areas with decentralized employment: Theory and empirical work," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 36, pages 1375-1412 Elsevier.
  17. Freedman, Ora & Kern, Clifford R., 1997. "A model of workplace and residence choice in two-worker households," Regional Science and Urban Economics, Elsevier, vol. 27(3), pages 241-260, June.
  18. White, M.J., 1988. "Urban Commuting Journeys Are Not Wasteful," Papers 88-10, Michigan - Center for Research on Economic & Social Theory.
  19. Anas, Alex, 2007. "A unified theory of consumption, travel and trip chaining," Journal of Urban Economics, Elsevier, vol. 62(2), pages 162-186, September.
  20. White, Michelle J, 1988. "Urban Commuting Journeys Are Not "Wasteful."," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 1097-110, October.
  21. Wieand, Kenneth F., 1987. "An extension of the monocentric urban spatial equilibrium model to a multicenter setting: The case of the two-center city," Journal of Urban Economics, Elsevier, vol. 21(3), pages 259-271, May.
  22. Jara-Díaz, Sergio R. & Munizaga, Marcela A. & Greeven, Paulina & Guerra, Reinaldo & Axhausen, Kay, 2008. "Estimating the value of leisure from a time allocation model," Transportation Research Part B: Methodological, Elsevier, vol. 42(10), pages 946-957, December.
  23. Anas, Alex, 1990. "Taste heterogeneity and urban spatial structure: The logit model and monocentric theory reconciled," Journal of Urban Economics, Elsevier, vol. 28(3), pages 318-335, November.
  24. Sullivan, Arthur M., 1986. "A general equilibrium model with agglomerative economies and decentralized employment," Journal of Urban Economics, Elsevier, vol. 20(1), pages 55-74, July.
  25. Hamilton, Bruce W, 1982. "Wasteful Commuting," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 1035-51, October.
  26. Hotchkiss David & White Michelle J., 1993. "A Simulation Model of a Decentralized Metropolitan Area with Two-Worker, Traditional, and Female-Headed Households," Journal of Urban Economics, Elsevier, vol. 34(2), pages 159-185, September.
  27. Alex Anas & Yu Liu, 2007. "A Regional Economy, Land Use, And Transportation Model (Relu-Tran," Journal of Regional Science, Wiley Blackwell, vol. 47(3), pages 415-455.
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