Location Dynamics: A Key Consideration for Urban Policy

he policies that cities adopt regarding such things as taxes, transportation infrastructure investment, zoning, schools, and police have important and often unpredictable effects on where businesses locate and individuals decide to live and work. In turn, these location decisions have real consequences for cities ’ general welfare and economic health. So to fully understand the long-term effects of their policies, cities must consider the complex ways by which firms, residents, and workers go about choosing where to locate. may be valid in the short term. However, in the long run, when faced with a new toll, people might not switch to transit. They might just choose to work or shop somewhere else, which could have negative economic consequence