We estimate an equilibrium sorting model of housing location and commuting mode choice
with endogenous traffic congestion to evaluate urban transportation policies. Leveraging
fine-scale data from travel diaries and housing transactions identifying residents' home and
work locations, we recover rich preference heterogeneity over both travel mode and
residential location decisions. While different policies produce the same congestion
reduction, their impacts on social welfare differ drastically. In addition, sorting undermines …

We estimate an equilibrium model of residential sorting with endogenous traffic congestion
to evaluate the efficiency and equity impacts of urban transportation policies. Leveraging
fine-scale data on household travel diaries and housing transactions with home and work
locations in Beijing, we jointly estimate travel mode and residential location decisions. The
estimation highlights the importance of incorporating work commute in housing decisions
and features preference heterogeneity for the ease of work commute by gender …