The effects of activities allocation on household compensatory deicision in residential location choice

Integrated land use and transport planning is critical for community development and metropolitan planning. The primary issue is to efficiently allocate the activity resources and transport infrastructure to cater for activity needs. As different cities have different socio-demographical characteristics and urban configurations, it is crucial to incorporate benefits for various partners from individual to household level simultaneously. To better capture the influence of activity resource allocation on heterogeneous households under various population composition and urban structures, we develop a combined equilibrium model to encapsulate a three-stage decision making process, i.e. individual activity destination choice (first stage), household residence location choice (second stage) and bid-rent process (third stage). Numerical results demonstrate that uniformly distributed activity resource and closely spaced CBDs can reach a lower housing rent compared with the case with centralized resource allocation and distant CBDs. Moreover, families without kids will benefit more under even distribution of educational resource in terms of disposable utility expenditure.