Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73747
Authors: 
Ebertz, Alexander
Year of Publication: 
2009
Series/Report no.: 
Ifo Working Paper 82
Abstract: 
This paper empirically investigates the household's decision to reside and work either inthe central metropolitan area, or in the surrounding nonmetropolitan area, or to commutebetween the two regions. As economic theory suggests the location decisionamounts to trading off wages, housing costs, and commuting time. A mixed logit modelis employed to quantify the interaction effects of these economic factors in the jointresidential and job location choice. The empirical approach does not rely on the restrictiveIIA assumption and allows for arbitrary correlation patterns between coefficients.Using data from a recent survey of more than half a million German households, theelasticities of individual location choice with respect to wages, housing costs, and commutingtime are estimated. The results show that individual valuations of these factorsare of the expected signs but vary substantially in the population. Shifts in consumersurplus and in the spatial distribution of households that are associated with changes inthe determinants of location choice are calculated based on the empirical estimates.
Subjects: 
Location choice
commuting
metropolitan area
discrete choice models
mixed logit
simulation based estimation
JEL: 
C15
C25
R12
R23
Document Type: 
Working Paper

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