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Commute Mode and Residential Location Choice

Author

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  • Andrea Craig

    (Department of Economics, University of Windsor)

Abstract

Public transportation infrastructure projects are major government investments that potentially affect not only travel mode choices, but residential location. To analyze the impacts of public transportation projects, accounting for households' residential location decisions, I develop a discrete choice model of commute mode and residential location. In this model, households have heterogeneous preferences for neighbourhood characteristics and commute costs. I estimate this model using microdata from Vancouver and commute times calculated with geographic information system (GIS) data. The mean-income household's willingness to pay to reduce commute time is fourteen dollars per hour and there is significant heterogeneity in this value across household income. Using the estimated model, I simulate households' residential and commute mode decisions under a proposed public transportation infrastructure project.

Suggested Citation

  • Andrea Craig, 2019. "Commute Mode and Residential Location Choice," Working Papers 1904, University of Windsor, Department of Economics.
    • Handle: RePEc:wis:wpaper:1904
    as

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    File URL: http://web2.uwindsor.ca/economics/RePEc/wis/pdf/1904.pdf
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    References listed on IDEAS

    as
    1. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    2. Patrick Bayer & Robert McMillan & Kim Rueben, 2004. "An Equilibrium Model of Sorting in an Urban Housing Market," NBER Working Papers 10865, National Bureau of Economic Research, Inc.
    3. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
    4. Raj Chetty & Nathaniel Hendren & Lawrence F. Katz, 2016. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment," American Economic Review, American Economic Association, vol. 106(4), pages 855-902, April.
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    Cited by:

    1. Tyndall, Justin, 2021. "The local labour market effects of light rail transit," Journal of Urban Economics, Elsevier, vol. 124(C).
    2. Mohammed M. Gomaa, 2023. "Macro-Level Factors Shaping Residential Location Choices: Examining the Impacts of Density and Land-Use Mix," Land, MDPI, vol. 12(4), pages 1-18, March.
    3. Alex Chernoff & Andrea N. Craig, 2022. "Distributional And Housing Price Effects From Public Transit Investment: Evidence From Vancouver," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 475-509, February.

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    More about this item

    Keywords

    residential choice; commute mode choice; public transportation; counterfactual simulation;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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