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Key Concepts from the Literature

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Housing Economics

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Abstract

This chapter develops the more technical concepts that are necessary to formalise the later analysis. These include residential density, segregation, agglomeration, social interactions, random walks, path dependence, mean reversion and institutions. It concentrates on three strands of the literature, beginning with elements of standard neo-classical residential location theory. The chapter, then, discusses models of neighbourhoods and social interactions and how spatial residential structure is an emergent property of the interdependent decisions of heterogeneous agents, leading to patterns of segregation. In addition, the chapter discusses path dependency and the role of historical development caused by the nature of institutions. Both of these are particular important in long-run studies.

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Notes

  1. 1.

    Evans also briefly discusses earlier research on cities in the classics, notably, by Adam Smith on the role of towns in the Wealth of Nations, agglomeration economies in Marshall’s Principles of Economics and Tiebout’s work on local public goods.

  2. 2.

    The models below are constructed using the Ascape software for agent-based systems.

  3. 3.

    See also Zhang (2004a, b) where stochastic stability is demonstrated in the context of a discrete choice random utilities model. Figure 3.2 is derived from Zhang’s work. The model is also used to demonstrate the causes of persistent suburbanisation of black households since the sixties, the expansion of black ghettos, and changes in racial house price and vacancy differentials.

  4. 4.

    Jan Hus’ attacks were inspired by the English Lollard movement.

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Author information

Authors and Affiliations

  1. Department of Economics, University of Reading, Reading, UK

    Geoffrey Meen & Christian Nygaard

  2. School of Social and Political Sciences, University of Glasgow, Glasgow, UK

    Kenneth Gibb

  3. School of the Built Environment, Heriot-Watt University, Edinburgh, UK

    Chris Leishman

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  1. Geoffrey Meen
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  2. Kenneth Gibb
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  3. Chris Leishman
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  4. Christian Nygaard
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Meen, G., Gibb, K., Leishman, C., Nygaard, C. (2016). Key Concepts from the Literature. In: Housing Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-47271-7_3

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  • DOI: https://doi.org/10.1057/978-1-137-47271-7_3

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