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ERIC Number: EJ709835
Record Type: Journal
Publication Date: 2005-Jan-1
Pages: 18
Abstractor: Author
ISBN: N/A
ISSN: ISSN-0022-0485
EISSN: N/A
Computer Simulation of the Alonso Household Location Model in the Microeconomics Course
Bolton, Roger E.
Journal of Economic Education, v36 n1 p59 Win 2005
Computer simulation of the Alonso household location model can enrich the intermediate microeconomics course. The model includes decisions on location, land space, and other goods and is a valuable complement to the usual textbook model of household consumption. It has three decision variables, one of which is a "bad," and one good's price is a nonlinear function of another decision variable. These instructive complications are easily within the grasp of students. The simulation illustrates algebraic utility functions that are important in later courses. The author describes ways to simulate various versions of the model, from relatively simple to advanced, including a version that incorporates time-allocation decisions, thus giving the instructor flexibility in teaching students of varying ability.
Heldref Publications, Helen Dwight Reid Educational Foundation, 1319 Eighteenth Street, NW, Washington, DC 20036-1802. Web site: http://www.heldref.org.
Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A