The use of Multinomial Logit (MNL) models specification for the simulation of residentialudlocation have been often criticised due to the Independence of Irrelevant Alternativesudhypothesis (IIA) which does not allow for the existence of spatial correlation between residentialudzones. Moreover, it is not clear when and to what extent the influence of the workplaceudzone and accessibility to employment affect the residential location choices made byudhouseholds; in other word, whether the residing choice is conditional to the workplace, orudvice versa; or if such choices (residence and work place) are joint.udIn this paper, Nested Logit (NL) and Cross-Nested Logit models of residential locationudchoice are specified and compared to MNL, to investigate the existence of spatial correlationudbetween different locations. Furthermore, different assumptions are tested, consideringudthe choice of residential zone and the joint choice of residential zone and work placeudzone.udThe models were estimated for the urban area of Santander (Spain). The results indicateudthat the inclusion in the model specification, of the spatial correlation between zones fitudthe data significantly better. Home-work journey times were a statistically significant factorudin household location choice, whereas accessibility to employment had the correct signudbut it was not statistically significant.
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