A model of public policy toward office relocation
When an office activity moves voluntarily in response to incentives provided by public policy, there is a presumption that the move benefits the relocating activity. But other activities may have to travel farther for face-to-face contact with the relocating activity; the resulting increases in transportation costs should be included in the system-wide effects of the relocation policy. A numerical example demonstrates that increases in system-wide costs can outweigh the benefits to the relocating activity. Empirical calibration of the model requires some modification of the contact diaries developed by Thorngren, To�rnqvist, and others. Diary information is needed from activities which initiate contact with the relocating activity. Diary information on transportation costs for face-to-face contacts and for the journey to work can be used to conduct simulations of alternative relocation policies.
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