ABSTRACT

This chapter explores the dimensions of household choice, holding the other components constant. It reviews the relationship of model results to the principal theoretical traditions and the implications of the research in light of the theoretical traditions. The chapter finds that the multinomial logit specification, based on discrete choice theory, and ultimately, on consumer economic theory, is a useful approach to overcoming many of the inherent limitations identified both in the gravity models and in the monocentric model. It addresses the issues surrounding the culture of poverty. The chapter focuses on the poorest strata of the population and those fully employed and participating in the mainstream economy. It provides a common thread for the integration of economic and sociological theory in the study of the development process.