Empirical agent-based land market: Integrating adaptive economic behavior in urban land-use models
Authored by Tatiana Filatova
Date Published: 2015
DOI: 10.1016/j.compenvurbsys.2014.06.007
Sponsors:
Netherlands Organization for Scientific Research (NWO)
United States National Science Foundation (NSF)
Coupled Natural and Human Systems program
Platforms:
R
NetLogo
GIS
Model Documentation:
UML
ODD
Flow charts
Mathematical description
Model Code URLs:
Model code not found
Abstract
This paper introduces an economic agent-based model of an urban housing
market. The RHEA (Risks and Hedonics in Empirical Agent-based land
market) model captures natural hazard risks and environmental amenities
through hedonic analysis, facilitating empirical agent-based land market
modeling. RHEA is well grounded in economic theory and uses rich spatial
data and econometric analysis. It moves beyond the existing work by
explicitly simulating the emergence of property prices and their spatial
distribution under adaptive price expectations of heterogeneous agents, advancing toward empirical modeling of agent-based land markets. At the
same time RHEA operates in a realistic GIS landscape where realtor and
households agents form ask and bid prices using empirical hedonic price
functions. The simulation results demonstrate that this combination of
theoretically sound micro-foundations in agents' behavior and empirical
data is feasible. This opens opportunities to explore various
methodological and policy-relevant research questions including
exploration of abrupt non-marginal changes in markets and regime shifts
in coupled socio-environmental systems. (C) 2014 Elsevier Ltd. All
rights reserved.
Tags
Dynamics
systems
preferences
Environmental amenities
Heterogeneous landscape
Ecological economics
Sprawl
Insurance
Decision
Hazards