What, Where, and Which? A Nested Logit Model for Dutch Housing Choice

What, Where, and Which? A Nested Logit Model for Dutch Housing Choice

Blijie, B.
De Vries, J.J.

Civil Engineering and Geosciences

Transport & Planning

2006-01-26

In the Netherlands, changes on the housing market and overloading of the transport system require a policy that pays attention to both sides of the coin. To make projections of possible scenarios, under different policies, models are developed to study the transport system, the housing market and their interaction. To investigate residential choice behavior of households and specifically the influence of accessibility, we developed a nested logit (NL) model with nests for dwelling and neighborhood characteristics. This paper presents the outcomes of a Nested logit model for residential choice behavior of low-educated households consisting of two or more persons with a head under 60 years, which is estimated on revealed preference data. We test the performance of different nesting structures, by creating nests for tenure, unit type, and dwelling and neighborhood characteristics. We compare the coefficients of a standard multinomial logit (MNL) Model and the best performing NL-model to determine whether we measure a different sensitivity for accessibility (and other variables). Unlike similar studies on data from other countries, we find that the best performing nesting structure is: unit type – tenure – (remaining) dwelling types. The estimated coefficients indicate a more significant influence of accessibility. The dwelling type and travel time to the previous dwelling and to the workplaces of head and partner remain the most influential variables. With an eye to communication to policy makers and incorporation into integrated models, the MNL model is still a good option for modeling residential choice in a larger urban modeling context.

housing
location choice
discrete choice modelling

http://resolver.tudelft.nl/uuid:ba318e77-4bf2-40b5-94e4-e23f3dc4f6ed

Transportation Research Board

Campus only

85th Annual Meeting Transportation Research Board, Washington, USA, 22-26 January 2006

Institutional Repository

conference paper

(c) 2006 Blijie, B.
De Vries, J.J.