IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v18y1981i3p347-358.html
   My bibliography  Save this article

A Conditional Logit Model of the Role of Local Public Services in Residential Choice

Author

Listed:
  • Joseph Friedman

    (Department of Economics and Centre for Urban and Regional Studies, Tel-Aviv University, Israel)

Abstract

This study develops and estimates an econometric model of choice among residential communities. The econometric method employed is maximum-likelihood estimation of a multinomial logit. This makes it possible to examine the effects of local public services and other community attributes on the residential location decisions by families. The model was estimated for six subsamples differing by household size, income, and age of head of household. For most of the subsamples that were examined, the conclusion is that local public services and other community characteristics play only minor roles in determining the residential location choice. The major determinant of residential location is the quantity of housing services that the household can obtain in a community.

Suggested Citation

  • Joseph Friedman, 1981. "A Conditional Logit Model of the Role of Local Public Services in Residential Choice," Urban Studies, Urban Studies Journal Limited, vol. 18(3), pages 347-358, October.
    • Handle: RePEc:sae:urbstu:v:18:y:1981:i:3:p:347-358
    DOI: 10.1080/00420988120080641
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420988120080641
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420988120080641?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. McGuire, Martin, 1974. "Group Segregation and Optimal Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 112-132, Jan.-Feb..
    2. Oates, Wallace E, 1969. "The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 957-971, Nov./Dec..
    3. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    4. Ellickson, Bryan, 1971. "Jurisdictional Fragmentation and Residential Choice," American Economic Review, American Economic Association, vol. 61(2), pages 334-339, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dahlberg, M. & Fredriksson, P., 2001. "Migration and Local Public Services," Papers 2001-12, Uppsala - Working Paper Series.
    2. Schmidheiny, Kurt, 2006. "Income segregation and local progressive taxation: Empirical evidence from Switzerland," Journal of Public Economics, Elsevier, vol. 90(3), pages 429-458, February.
    3. Sigal Kaplan & Shlomo Bekhor & Yoram Shiftan, 2011. "Development and estimation of a semi-compensatory residential choice model based on explicit choice protocols," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 51-80, August.
    4. Dahlberg, Matz & Eklöf, Matias, 2003. "Relaxing the IIA Assumption in Locational Choice Models: A Comparison Between Conditional Logit, Mixed Logit, and Multinomial Probit Models," Working Paper Series 2003:9, Uppsala University, Department of Economics.
    5. Brülhart, Marius & Bucovetsky, Sam & Schmidheiny, Kurt, 2015. "Taxes in Cities," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1123-1196, Elsevier.
    6. Andrejs Skaburskis, 1999. "Modelling the Choice of Tenure and Building Type," Urban Studies, Urban Studies Journal Limited, vol. 36(13), pages 2199-2215, December.
    7. Earnhart, Dietrich, 2002. "Combining Revealed and Stated Data to Examine Housing Decisions Using Discrete Choice Analysis," Journal of Urban Economics, Elsevier, vol. 51(1), pages 143-169, January.
    8. Peter Berck & Sofia Tano & Olle Westerlund, 2016. "Regional Sorting of Human Capital: The Choice of Location among Young Adults in Sweden," Regional Studies, Taylor & Francis Journals, vol. 50(5), pages 757-770, May.
    9. Feld, Lars P, 2000. "Tax Competition and Income Redistribution: An Empirical Analysis for Switzerland," Public Choice, Springer, vol. 105(1-2), pages 125-164, October.
    10. Martin F. Grace & David L. Sjoquist, 2020. "The Effect of Taxes on the Location of Property‐Casualty Insurance Firms," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 87(4), pages 1035-1062, December.
    11. Ying Fan & Charles Ka Yui Leung & Zan Yang, 2022. "Financial conditions, local competition, and local market leaders: The case of real estate developers," Pacific Economic Review, Wiley Blackwell, vol. 27(2), pages 131-193, May.
    12. Feld, Lars P. & Kirchgassner, Gebhard, 2001. "Income tax competition at the State and Local Level in Switzerland," Regional Science and Urban Economics, Elsevier, vol. 31(2-3), pages 181-213, April.
    13. Aiga Stokenberga, 2019. "How family networks drive residential location choices: Evidence from a stated preference field experiment in Bogotá, Colombia," Urban Studies, Urban Studies Journal Limited, vol. 56(2), pages 368-384, February.
    14. Matz Dahlberg & Matias Eklöf & Peter Fredriksson & Jordi Jofre-Monseny, 2012. "Estimating Preferences for Local Public Services Using Migration Data," Urban Studies, Urban Studies Journal Limited, vol. 49(2), pages 319-336, February.
    15. Cheol-Joo Cho, 1997. "Joint Choice of Tenure and Dwelling Type: A Multinomial Logit Analysis for the City of Chongju," Urban Studies, Urban Studies Journal Limited, vol. 34(9), pages 1459-1473, August.
    16. Ozturk, Erdogan & Irwin, Elena G., 2001. "Explaining Household Location Choices Using A Spatial Probit Model," 2001 Annual meeting, August 5-8, Chicago, IL 20626, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Mario du Preez & Michael C. Sale, 2012. "Determining the impact of low-cost housing development on nearby property prices using discrete choice analysis," Working Papers 265, Economic Research Southern Africa.
    18. Asmae AQZZOUZ & Nathalie PICARD, 2024. "Residential Mobility And Life Cycle: Examination Of The Influence Of Local Taxes," Working Papers of BETA 2024-12, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    19. Asmae AQZZOUZ & Nathalie PICARD, 2023. "Residential Mobility And Life Cycle: Identifying The Role Of Local Taxes," Working Papers of BETA 2023-43, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    20. Marois, Guillaume & Lord, Sébastien & Morency, Catherine, 2019. "A mixed logit model analysis of residential choices of the young-elderly in the Montreal metropolitan area," Journal of Housing Economics, Elsevier, vol. 44(C), pages 141-149.
    21. Sigal Kaplan & Yoram Shiftan & Shlomo Bekhor, 2011. "A Semi-Compensatory Residential Choice Model With Flexible Error Structure," ERSA conference papers ersa10p65, European Regional Science Association.
    22. Ken Sanford & William Hoyt, 2009. "Is the Grass Greener on the Other Side of the River?: The Choice of Where to Work and Where to Live for Movers," Working Papers 2009-05, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
    23. Bulent Uyar & Kenneth H. Brown, 2005. "Impact of Local Public Services and Taxes on Dwelling Choice within a Single Taxing Jurisdiction: A Discrete Choice Model," Journal of Real Estate Research, American Real Estate Society, vol. 27(4), pages 427-444.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sandler, Todd & Tschirhart, John T, 1980. "The Economic Theory of Clubs: An Evaluative Survey," Journal of Economic Literature, American Economic Association, vol. 18(4), pages 1481-1521, December.
    2. Sigrid Roehrs & David Stadelmann, 2010. "Mobility and local income redistribution," Working Papers 2010/4, Institut d'Economia de Barcelona (IEB).
    3. John P. Conley & Robert Driskill & Ping Wang, 2019. "Capitalization, decentralization, and intergenerational spillovers in a Tiebout economy with a durable public good," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 67(1), pages 1-27, February.
    4. Amy Binner & Brett Day, 2018. "How Property Markets Determine Welfare Outcomes: An Equilibrium Sorting Model Analysis of Local Environmental Interventions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(4), pages 733-761, April.
    5. Dennis Epple & Holger Sieg, 1999. "Estimating Equilibrium Models of Local Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 645-681, August.
    6. Schaltegger, Christoph A. & Somogyi, Frank & Sturm, Jan-Egbert, 2011. "Tax competition and income sorting: Evidence from the Zurich metropolitan area," European Journal of Political Economy, Elsevier, vol. 27(3), pages 455-470, September.
    7. Charles A. M. de Bartolome & Stephen L. Ross, 2002. "The Race to the Suburb: The Location of the Poor in a Metropolitan Area," Working papers 2002-02, University of Connecticut, Department of Economics, revised May 2008.
    8. Nicolai V. Kuminoff & V. Kerry Smith & Christopher Timmins, 2010. "The New Economics of Equilibrium Sorting and its Transformational Role for Policy Evaluation," NBER Working Papers 16349, National Bureau of Economic Research, Inc.
    9. Eric Hanushek & Kuzey Yilmaz, 2010. "Household Location and Schools in Metropolitan Areas with Heterogeneous Suburbs: Tiebout, Alonso, and Government Policy," Discussion Papers 09-012, Stanford Institute for Economic Policy Research.
    10. Chi-Yuan Tsai, 1982. "Taxes and residential choice," Public Choice, Springer, vol. 38(1), pages 55-72, March.
    11. Bryan Ellickson, 1977. "An Alternative Test of the Hedonic Theory of Housing Markets," UCLA Economics Working Papers 104, UCLA Department of Economics.
    12. Schmidheiny, Kurt, 2006. "Income segregation and local progressive taxation: Empirical evidence from Switzerland," Journal of Public Economics, Elsevier, vol. 90(3), pages 429-458, February.
    13. de Bartolome, Charles A. M. & Ross, Stephen L., 2003. "Equilibria with local governments and commuting: income sorting vs income mixing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 1-20, July.
    14. Binner, Amy & Day, Brett, 2015. "Exploring mortgage interest deduction reforms: An equilibrium sorting model with endogenous tenure choice," Journal of Public Economics, Elsevier, vol. 122(C), pages 40-54.
    15. David Stadelmann & Reiner Eichenberger, 2014. "Public debts capitalize into property prices: empirical evidence for a new perspective on debt incidence," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(3), pages 498-529, June.
    16. Fred E. Foldvary, 2005. "Geo-Rent: A Plea to Public Economists," Econ Journal Watch, Econ Journal Watch, vol. 2(1), pages 106-132, April.
    17. Alan Evans, 1976. "Economic Influences on Social Mix," Urban Studies, Urban Studies Journal Limited, vol. 13(3), pages 247-260, October.
    18. Martinez-Vazquez, Jorge & Rider, Mark & Walker, Mary Beth, 1997. "Race and the Structure of School Districts in the United States," Journal of Urban Economics, Elsevier, vol. 41(2), pages 281-300, March.
    19. Bradbury, Katharine L. & Mayer, Christopher J. & Case, Karl E., 2001. "Property tax limits, local fiscal behavior, and property values: evidence from Massachusetts under Proposition," Journal of Public Economics, Elsevier, vol. 80(2), pages 287-311, May.
    20. Bryan Ellickson, 1977. "Local Public Goods and the Market for Neighborhoods," UCLA Economics Working Papers 100, UCLA Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:18:y:1981:i:3:p:347-358. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.