This dissertation focuses on the integration of models of spatial location and transportation decision-making that form the core of modern integrated urban models. A conceptual framework for the modelling of household behaviour is developed from the theory of home production. This theory provides a means of integrating individual time-use and household consumption of goods and services in a consistent microeconomic model structure. It is shown that budgetary constraints on time-use and consumption can be used to relate models of long-term location choice with activity-based transportation demand models and macroeconomic models.

The dissertation contains six empirical studies that develop elements of the proposed conceptual framework for integrated urban modelling. The first two studies focus on shifts in residential location choice. The first of these studies estimates a residential location choice model that incorporates intra-household negotiations. The second study applies a choice set formation model to a panel of residential location choice data to explore potential shifts in the types of dwellings considered by households. A third location study applies a latent auction approach to establishment location choice. It tests a structural specification of agglomeration using a generalized nested logit correlation structure.

The final three empirical studies focus on elements of the home production model. The first of these studies develops a framework for data fusion and synthesis to construct the dataset necessary for the estimation of the home production model. The model is then derived from microeconomic foundations and estimated using this dataset. The final empirical study isolates a component of the home production model;​ specifically, the relationship between population density and household consumption.

Taken together, the components of this dissertation provide a sophisticated framework for the integrated modelling of urban systems and empirical validation of several elements of the framework.