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Explaining the location decision of moving firms using their mobility profile and the accessibility of locations

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  • Michiel de Bok

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    Abstract

    This paper describes the research approach and first empirical results of the estimation of discrete choice models that describe the location decision of moving firms. The model is based on random utility theory and features systematic choice sets to account for the choice context at the highest level of spatial detail (address-level). Firms are analysed categorised to their mobility profile. These mobility profiles are homogenous groups of firms with similar mobility characteristics that are a priori assumed. The models are tested on an extensive revealed preference dataset with firm migration observations in South Holland. To avoid correlations between variables a variety of composed accessibility variables have been constructed that describe the distances to the physical infrastructure or that are an aggregated form of potential accessibility. The location attributes of alternatives have been completed with the business environment type and the rental level. The results are first of all valuable for the development of a simulation model for firm location but the empirical results also yields insight into the spatial behaviour and location preference of firms. Although further research is necessary, the presented addresses some challenges in modelling the spatial behaviours of firms in an urban environment. Therefore the presented approach holds seems valuable for the development of a simulation model for location decisions of moving firms and offers good possibilities for future research.

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    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p338.

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    Date of creation: Aug 2004
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    Handle: RePEc:wiw:wiwrsa:ersa04p338

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    1. Jouke van Dijk & Piet H. Pellenbarg, 2000. "Firm relocation decisions in The Netherlands: An ordered logit approach," Papers in Regional Science, Springer, Springer, vol. 79(2), pages 191-219.
    2. Holl, Adelheid, 2004. "Manufacturing location and impacts of road transport infrastructure: empirical evidence from Spain," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 34(3), pages 341-363, May.
    3. Leitham, Scott & McQuaid, Ronald W. & D. Nelson, John, 2000. "The influence of transport on industrial location choice: a stated preference experiment," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 34(7), pages 515-535, September.
    4. Daniel McFadden, 1977. "Modelling the Choice of Residential Location," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 477, Cowles Foundation for Research in Economics, Yale University.
    5. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
    6. Leo van Wissen, 2000. "A micro-simulation model of firms: Applications of concepts of the demography of the firm," Papers in Regional Science, Springer, Springer, vol. 79(2), pages 111-134.
    7. Rietveld, Piet, 1994. "Spatial economic impacts of transport infrastructure supply," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 28(4), pages 329-341, July.
    8. Brouwer, Aleid & Mariotti, Ilaria & van Ommeren, Jos, 2002. "The firm relocation decision: a logit model," ERSA conference papers, European Regional Science Association ersa02p205, European Regional Science Association.
    9. Shukla, Vibhooti & Waddell, Paul, 1991. "Firm location and land use in discrete urban space : A study of the spatial structure of Dallas-Fort worth," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 21(2), pages 225-253, July.
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