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Miscellany

Urban supply–demand interrelations in business services

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Pages 163-180 | Published online: 25 Jan 2007
 

Abstract

Business services are mainly concentrated in major urban economic areas, and affect the way in which supply and demand interact at urban level. Firstly, this article explains the corresponding impact for location and use, given a set of possible explanatory factors. Secondly, we test hypotheses within the Madrid region: a specific econometric model (a 3-steps Probit) tested upon an ad hoc survey covering 32 services in 14 cities. The results confirm the expected limited impact of local supply on demand behaviour, but show differences depending on the type of services.

Notes

Cities, towns and municipalities are used as equivalent terms. Secondary cities and conurbations are different concepts except for some cases like the Madrid one, where these secondary small or medium size cities in the surroundings of Madrid are so close that constitute its conurbation.

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