Search Theory and Commuting Behavior

Research output: Working paperProfessional

Abstract

In this paper I argue that search theory is a useful addition to the way economists and geographers have approached the study of commuting behavior. This is illustrated by showing that introduction of a spatial element into the standard model of job search leads to the prediction of critical isochrones. Moreover, in the context of an urban economy with decentralized employment the spatial search model predicts excess commuting. Search theory also suggests that regression towards the mean may play a confusing role in data describing the development of commutes over time, such as has been used in recent empirical work. Finally, the paper develops a simple spatial equilibrium search model in which employers set their wages optimally and searchers determine their reservation wages optimally in mutually consistent ways. The spatial element is crucial for the existence of such an equilibrium in which reservation wages of all searchers and wages set by all employers are identical.
Original languageEnglish
Place of PublicationAmsterdam
PublisherTinbergen Instituut
Publication statusPublished - 2004

Publication series

NameDiscussion paper TI
No.04-017/3

Fingerprint

Commuting
Search theory
Wages
Employers
Reservation wage
Job search
Spatial equilibrium
Economists
Prediction
Urban economy

Cite this

Rouwendal, J. (2004). Search Theory and Commuting Behavior. (Discussion paper TI; No. 04-017/3). Amsterdam: Tinbergen Instituut.
Rouwendal, Jan. / Search Theory and Commuting Behavior. Amsterdam : Tinbergen Instituut, 2004. (Discussion paper TI; 04-017/3).
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Rouwendal, J 2004 'Search Theory and Commuting Behavior' Discussion paper TI, no. 04-017/3, Tinbergen Instituut, Amsterdam.

Search Theory and Commuting Behavior. / Rouwendal, Jan.

Amsterdam : Tinbergen Instituut, 2004. (Discussion paper TI; No. 04-017/3).

Research output: Working paperProfessional

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Rouwendal J. Search Theory and Commuting Behavior. Amsterdam: Tinbergen Instituut. 2004. (Discussion paper TI; 04-017/3).