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A Cellular Automata Simulation of the 1990s Russian Housing Privatization Decision

Author

Listed:
  • Maria Plotnikova

    (Department of Economics, University of Reading)

  • Chokri Dridi

    (Department of Rural Economy, University of Alberta)

Abstract

The study uses a computational approach to study the phenomenon of housing privatization in Russia in the 1990s. As part of the housing reform flats in multi-family buildings were offered to their residents free of payment. Nevertheless rapid mass housing privatization did not take place. While this outcome admits a number of explanations this analysis emphasizes the fact that the environment in which the decision-making households were operating had a high degree of uncertainty and imposed a high information-processing requirement on the decision-makers. Using the bounded rationality paradigm, the study builds a case for a cellular automata simulation of household decision-making in the context of housing privatization reforms in Russia in the 1990s. Cellular automata is then used to simulate a household's decision to become the owner of its dwelling.

Suggested Citation

  • Maria Plotnikova & Chokri Dridi, 2010. "A Cellular Automata Simulation of the 1990s Russian Housing Privatization Decision," Economics Discussion Papers em-dp2010-05, Department of Economics, University of Reading.
    • Handle: RePEc:rdg:emxxdp:em-dp2010-05
    as

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    File URL: http://www.reading.ac.uk/web/FILES/economics/emdp2010086.pdf
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    References listed on IDEAS

    as
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    2. Caruso, Geoffrey & Peeters, Dominique & Cavailhes, Jean & Rounsevell, Mark, 2007. "Spatial configurations in a periurban city. A cellular automata-based microeconomic model," Regional Science and Urban Economics, Elsevier, vol. 37(5), pages 542-567, September.
    3. Herbert A. Simon, 1996. "The Sciences of the Artificial, 3rd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691914, April.
    4. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-493, May.
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    More about this item

    Keywords

    cellular automata; complex systems; housing reform; Russia; simulation;
    All these keywords.

    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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