Predicting Intra-Urban Residential Location Preferences: An Application of the Dynamic Generalized Linear Expenditure System

Abstract

The purpose of this paper is to illustrate how the allocation models widely used in traditional demand theory may be applied to: (1) evaluate future residential location preferences; (2) study the effects of locational preferences on overall urban structure and growth; (3) rank intra-urban places in terms of basic residential locational preferences; and (4) evaluate the cross-locational effects of a substantial change in spatial prices, total growth in housing expenditures, and mortgage costs on household relocation decisions. The model used in this paper is a modified version of the Dynamic Generalized Linear Expenditure System. Metropolitan Toronto, sub-divided into three sub-housing markets (East, Central and West), was chosen for the empirical application of the model.