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TRAFFIC CONGESTION, POLYCENTRICITY, AND INTRAURBAN FIRM LOCATION CHOICES: A NESTED LOGIT MODEL FOR THE LOS ANGELES METROPOLITAN AREA
Author(s) -
Hou Yuting
Publication year - 2016
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12267
Subject(s) - metropolitan area , urban agglomeration , nested logit , traffic congestion , economic geography , discrete choice , economies of agglomeration , polycentricity , order (exchange) , business , transport engineering , economics , geography , econometrics , microeconomics , finance , corporate governance , archaeology , engineering
This study empirically investigates traffic congestion effects on agglomeration through the lens of firm location decisions. A discrete choice model is applied to examine new establishments’ location choices within the Los Angeles metropolitan area. Employment centers are defined as the choice set to explore the nature and role of intraurban agglomerations. The results show that metro‐wide congestion negatively affects the location choices of firms in the high‐order office‐related activities, while local congestion have positive impacts on those firms’ location decisions. In contrast, firms in production‐related activities are positively influenced by regional congestion but are negatively affected by local congestion levels.