A SPATIAL MULTIVARIATE COUNT MODEL FOR FIRM LOCATION DECISIONS

Authors


  • The authors are grateful to Lisa Macias for her help in formatting this document. Three referees provided valuable comments on an earlier version of the paper.

ABSTRACT

This paper proposes a new spatial multivariate model to predict the count of new businesses at a county level in the state of Texas. Several important factors including agglomeration economies/diseconomies, industrial specialization indices, human capital, fiscal conditions, transportation infrastructure, and land development characteristics are considered. The results highlight the need to use a multivariate modeling system for the analysis of business counts by sector type, while also accommodating spatial dependence effects in business counts.

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