This paper investigates the effect of a move by a household to live away from city center. What do you get from living out of town? It is shown that while you get a lower rent, you also get a larger housing space. However, a surprising result is that your utility level is lowered. This refutes an assumption of traditional spatial theory that households are indifferent about location choice. This paper also offers a new view on the linearity of the housing rent gradient function. The gradient curve can be convex or has a mirrored-S shape.
Choi, Hak. "What do you get from living out of Town? - A Study on Housing Rent Gradient and Household Utility Change." In 10th European Real Estate Society Conference. ERES: Conference. Helsinki, Finland, 2003.
Section: Session 3, Housing Economics 1