This paper attempts to forecast the impact of a large transport infra-structure implementation (the outer ring in São Paulo Metropolitan Area) on firms location decision (i.e. the number of jobs by industry) and on households location decision by income class and origin-destination zones. Using the variation in commuting time given by the new infrastructure we can estimate the change in location decision by firms or households. The simulation results show that the south part of the outer ring does not have any significant impact on firm or households location decision if initial conditions are kept relatively constants. However, if there is an employment bubble in a site close to the new infrastructure the outer ring may work as a catalyst to induce more occupation in its surrounding areas.
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Length: Date of creation: 2005 Date of revision: Handle: RePEc:anp:en2005:128
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Find related papers by JEL classification: R4 - Urban, Rural, and Regional Economics - - Transportation Systems
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