Jump to ContentJump to Main Navigation
From Neighborhoods to NationsThe Economics of Social Interactions$
Users without a subscription are not able to see the full content.

Yannis M. Ioannides

Print publication date: 2012

Print ISBN-13: 9780691126852

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691126852.001.0001

Show Summary Details
Page of

PRINTED FROM PRINCETON SCHOLARSHIP ONLINE (www.princeton.universitypressscholarship.com). (c) Copyright Princeton University Press, 2017. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in HSO for personal use (for details see http://www.universitypressscholarship.com/page/privacy-policy).date: 10 December 2017

Location Decisions of Individuals and Social Interactions

Location Decisions of Individuals and Social Interactions

Chapter:
(p.79) Chapter 3 Location Decisions of Individuals and Social Interactions
Source:
From Neighborhoods to Nations
Author(s):

Yannis M. Ioannides

Publisher:
Princeton University Press
DOI:10.23943/princeton/9780691126852.003.0003

This chapter examines the location decisions of individuals, with particular emphasis on neighborhood effects in housing markets and how they relate to the role of prices in rationing admission to communities and neighborhoods in market economies. It begins by introducing models of individual location decisions that rely on the characteristics approach in the presence of contextual effects and use individual dwelling units as the object of choice. It then presents examples of sorting models that allow for choice of neighborhood with endogenous contextual effects, followed by a discussion of models and associated empirical results for neighborhood choice and housing as a joint decision that allow for social effects. It also describes models of location decisions, proposed by Thomas Schelling, that take into account the influence of racial preferences and neighbors' reactions. Finally, it looks at hierarchical models of community choice with social interactions.

Keywords:   location decisions, neighborhood effects, housing, social interactions, contextual effects, neighborhood choice, social effects, Thomas Schelling, racial preferences, community choice

Princeton Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us.