In a provocative article, Hamilton [l] demonstrates that the simple
monocentric model of urban location, modified to allow for decentralized
employment, does a poor job of predicting actual commuting distances in
major U.S. cities. According to the monocentric model, households locate
to maximize the utility received from housing and all other goods
(= income - commuting costs - housing costs). If households are otherwise
indifferent among housing locations, and if there is one worker per