This study investigates how residential location patterns among different
income households in Bangkok changes as a consequence of transport innovation.
Using comparative static approach, the model employs two data sets collected by the
Socio Economic Survey (SES) in 1998 and 2004 for the pre- and post-rapid rail transit
system respectively.
The study follows the theoretical framework of LeRoy and Sonstelie (1983)
which extended the Alonso’s model to analyse the influence of two competing modes
on the change in residential location pattern. Provided that an individual chooses
residential location and commuting mode simultaneously, the estimation is based on
the multinomial logit approach in reverse which is developed on Ellickson’s
technique to determine bid-rent function underlying residential location equilibrium.
This analysis permits us to observe the change in residential location patterns without
strictly assuming that the income elasticity of housing demand must be greater than
that of marginal commuting costs.