AREUEA Presentation 2006

nHouseholds:

•L households

•Income y

•Preferences v(c,q)

•composite good c

•housing q.

•Household located at x pays annual transportation costs

nIn equilibrium, household optimization implies:

n

for all locations x

nHousing q for consumption is produced by a housing production sector

n

Modeling urban land use

nHouseholds:

•L households

•Income y

•Preferences v(c,q)

•composite good c

•housing q.

•Household located at x pays annual transportation costs

nIn equilibrium, household optimization implies:

n

for all locations x

nHousing q for consumption is produced by a housing production sector

n