Simulations of firm location decisions: Replicating office location choices in the Greater Toronto Area. (December 2015)

• Record Type: Journal Article
• Authors: Elgar, Ilan; Farooq, Bilal; Miller, Eric J.
• Is Part Of: Journal of choice modelling. Volume 17(2015)
• Page Start: 39
• Page End: 51
• Publication Date: 2015-12
• Subjects: Firm location -- Location simulation -- Search areas -- Choice set; Decision making -- Periodicals; Social choice -- Periodicals; Decision making; Social choice; Periodicals; 302.13
• DOI: 10.1016/j.jocm.2015.12.003
• Languages: English
• ISSNs: 1755-5345

Abstract

Abstract: Firm (employment) location influences the behaviour of individuals and households in the short and long term. This paper presents simulations conducted to test the ability of an office location model to replicate the actual choices of office firms in the Greater Toronto Area. It is found that including explicit search areas can significantly increase the ability of location models to replicate actual choices by office firms. In addition, simulation procedures themselves have an impact on the forecasting capabilities of the modelling system. Finally, despite the suggested improvements, the model system's ability to replicate location decisions of specific firms is somewhat limited.