A tractable approach to the firm location decision

  title={A tractable approach to the firm location decision},
  author={Paulo Guimar{\~a}es and Oct{\'a}vio Figueirdo and Douglas Woodward},
The conditional logit model based on random utility maximization has provided an adequate framework to model Ž rm location decisions. However, in practice, the implementation of this methodology presents problems when one has to handle complex choice scenarios with a large number of spatial alternatives. We posit the Poisson regression as a tractable solution to these problems. We demonstrate that by taking advantage of an equivalence relation between the likelihood function of the conditional… CONTINUE READING

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