A Tractable Approach to the Firm Location Decision Problem

• Tipo: Artigo em Revista Científica Internacional
• Data: 2003

Autores

Paulo Guimaraes (Autor) Outra; Figueirdo, O (Autor) Outra; Woodward, D (Autor) Outra

Revista

Título: Review of Economics and Statistics

Vol. 85 Nº 1

Páginas: 201-204

ISSN: 0034-6535

Editora: MIT Press

Indexação

ISI Web of Knowledge - 82 Citações

Scopus - 97 Citações

Outras Informações

ID Authenticus: P-00H-ZVB

DOI: 10.1162/003465303762687811

Abstract (EN): The conditional logit model based on random utility maximization has provided an adequate framework to model firm 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 logit and the Poisson regression we can, under certain circumstances, easily estimate a conditional logit model regardless of the number of choices. This insight should be particularly useful for studies of economic location.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 4