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Publication Detail
RP NCTS 2005-02: Initial Development of a Residential Location Choice Model for Metro Manila Using Microsimulated Household Data

Metro Manila’s urban structure has changed dramatically over the past decades. Coupled with its urban evolution are problems as population boom, unchecked land development, increased housing cost and longer commutes. The government on the other hand is still far behind in addressing these problems which Metro Manila is currently coping with. Given these present conditions, there is an immediate need to analyze and understand the underlying causes that shape the urban structure of the metropolis. Since household location preferences play an important role in urban development patterns, the research focused on household residential location choice behavior. However, the unavailability of housing and income related variables and spatial identifiers in available census-based surveys prohibit our research objectives. In addition, the conduct of private household surveys is indeed very expensive. These limitations prompted the use of artificial means of data generation. Specifically, the study made use of spatial microsimulation to create synthetic household micro data that were later used in the modeling process. The research in fact was able to show the usefulness and effectiveness of artificial data in urban modeling development. To site, household willingness-to-pay (WTP) functions for dwelling and neighborhood characteristics were successfully developed. The bid-choice theory of Martinez was utilized in the development of the model. The WTP functions were able to present bids households are willing to make a wide variety of explanatory variables. It is perceived that this study will serve as a first step in understanding the choice behavior of households in making long-term decisions particularly the choice of home.

Authors Keywords
Rivera, Michael Angelo I.; residential location choice; bid-choice theory; willingness-to-pay;
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