We develop a new model of household sorting in a system of residential
neighborhoods. We show that this model is partially identified without imposing parametric restrictions on the distribution of unobserved tastes for neighborhood quality and the shape of the indirect utility function. The proof of identification is constructive and can be used to derive a new semiparameteric estimator. Our empirical
application focuses on residential choices in the Pittsburgh metropolitan
area. We find that sorting of households with children exhibit
more stratification by income than sorting of households without children. (JEL C51, D12, H41, J12, R21, R23)
Epple, Dennis, Michael Peress, and Holger Sieg.
"Identification and Semiparametric Estimation of Equilibrium Models of Local Jurisdictions."
American Economic Journal: Microeconomics,
Model Construction and Estimation
Consumer Economics: Empirical Analysis
Marriage; Marital Dissolution; Family Structure; Domestic Abuse
Urban, Rural, and Regional Economics: Housing Demand
Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics