HETEROGENEOUS TASTES AND RESIDENTIAL LOCATION*

Abstract

ABSTRACT. In a simple urban model, where the only spatial distinction made is between center and suburb, we introduce a uniform distribution of preferences for land. Under a logarithmic utility function, we examine how the location and consumption decisions of individuals differ in consequence of their different preferences for land. Comparative statics indicate that the qualitative response of the city at equilibrium to changes in per capita income and transportation cost is not affected by the introduction of such heterogeneity. Possible extensions are also briefly discussed.