Local income effects of office relocation

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Abstract
Yannopoulos G. (1973) Local income effects of office relocation, Reg. Studies 7, 33–46. This paper examines the impact of office moves on the local income of the towns of reception, by utilizing data gathered through two mail questionnaires. This impact is estimated by focusing both on the value of the local income multiplier associated with office employment expansion and on the size of the multiplicand. The multiplicand here is extended to include (i) the local value added by the new firm once it starts operating in the urban economy, (ii) the inter-industry relationships between the new firms and the other local firms, and (iii) the induced investment effects that may follow the expansion of local demand due to entry of offices into the town. The multiplier model used recognizes the distinction between local goods, where supply and demand have to be balanced at the local level, and non-local goods, where such a restriction does not hold.