An Urban General Equilibrium Model with Multiple Household Structures and Travel Mode Choice

Dresden Discussion Paper in Economics No. 06/09

40 Pages Posted: 2 Dec 2009

See all articles by Georg Hirte

Georg Hirte

Technische Universität Dresden Institute of Transport & Economics

Stefan Tscharaktschiew

Institute of Transport & Economics Chair of Spatial Economics and Regional Science

Date Written: June 1, 2009

Abstract

Households in real cities are heterogeneous regarding their size and composition. An aspect usually neglected in urban models used to study economic and policy issues that arise in today's cities. We develop an urban general equilibrium model that takes a more complex household structure explicitly into account. The model is based on the single consumer type model of Anas and Xu (1999) or Anas and Rhee (2006) and treats the interactions of urban product, labor and land markets as well as linkages between city firms and different consumer types living in different household structures. Households differ not only in endowments, preferences and their valuation in regard to different travel modes, but also in size and the composition regarding their members. The implementation of a more complex household structure then allows studying a broad range of further urban economic issues, which treat different household structures differently.

Keywords: Urban Economics, General Equilibrium, Household structure, Location choice

JEL Classification: R12, R13, R14, R20

Suggested Citation

Hirte, Georg and Tscharaktschiew, Stefan, An Urban General Equilibrium Model with Multiple Household Structures and Travel Mode Choice (June 1, 2009). Dresden Discussion Paper in Economics No. 06/09, Available at SSRN: https://ssrn.com/abstract=1516610 or http://dx.doi.org/10.2139/ssrn.1516610

Georg Hirte (Contact Author)

Technische Universität Dresden Institute of Transport & Economics ( email )

Würzburger Str. 35
Dresden, 01062
Germany

Stefan Tscharaktschiew

Institute of Transport & Economics Chair of Spatial Economics and Regional Science ( email )

Einsteinstrasse 3
Dresden, 01062
Germany

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