The principle objective of this investigation is to give a theoretical framework for the use of stated preference (SP) techniques in the choice of residential location. For this, a review is done of the microeconomic theory applied to the urban residential location. As part of this review, and strongly based on the work of Jara-Diaz et al (1994), a general microeconomic model is proposed which outlines an optimisation problem to solve the maximum utility reached by a household in a determined location. This is done by conceptualising the interaction between the activities and transport systems. It is concluded that the benefits of increasing specification detail tend to be cancelled by the increase in required complexity to find a solution. A more simple model is postulated from which are obtained the theoretical arguments needed for the estimation stage and the properties of the representative utilities of time and income are clarified. The SP data estimation results for the preliminary theoretical developments are compared with those obtained in modal choice research, using the subjective value of time (SVT) as an index. In this way, the investigation found two important results. First, a strong interpretation of the origin of the indirect utility functions to be used in location choice models was derived. Secondly, the feasibility of applying SP instruments to the development of land use models and the advantages this has in terms of data collection were shown.
Abstract