Abstract
Bearing in mind that people may have rational expectations conditional on current information, this paper provides additional insights about the influences of current neighbourhood characteristics on household residential location choice behaviour from such a perspective by comparing actual choices and subjective expectations. Using data in Hanoi, Vietnam in 2005 and multinomial logit models, it is found that current neighbourhood characteristics surely influence subjective expectations for the future residential location, but the influences are different from those on actual choices in the sense that signs and/or magnitudes of parameters of some specific neighbourhood characteristics change significantly. With the above results, it is concluded that subjective expectations in the research of residential location choice behaviour should be paid more attention.
