This is the second half of a two part paper reviewing models of the residential subsystem. Part 1 (Senior, 1973)(1) covered urban ecological and spatial interaction models, and concluded on the theme that improved operational predictive models may result from an increased awareness of theoretical work. The theme is continued here with a critical appraisal of economic theories of the housing market and the operational models that urban economists have devised. This provides the basis for a wider ranging review of the ties between existing theories and some recent model developments.
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