CREAT: Census Research Exploration and Analysis Tool

The Role of Cities: Evidence From the Placement of Sales Offices

January 2002

Written by: Thomas J Holmes

Working Paper Number:

CES-02-02

Abstract

What is the force of attraction of cities? Leading explanations include the advantages of a con-centrated market and knowledge spillovers. This paper develops a model of firm location decisions in which it is possible to distinguish the importance of the concentrated-market motive from other motives, including knowledge spillovers. A key aspect of the model is that it allows for the firm to choose multiple locations. The theory is applied to study the placement of manufacturing sales offices. The implications of the concentrated-market motive are found to be a salient feature of U.S. Census micro data. The structural parameters of the model are estimated. The concentrated-market motive is found to account for approximately half of the concentration of sales offices in large cities.

Document Tags and Keywords

Keywords Keywords are automatically generated using KeyBERT, a powerful and innovative keyword extraction tool that utilizes BERT embeddings to ensure high-quality and contextually relevant keywords.

By analyzing the content of working papers, KeyBERT identifies terms and phrases that capture the essence of the text, highlighting the most significant topics and trends. This approach not only enhances searchability but provides connections that go beyond potentially domain-specific author-defined keywords.
:
demand, market, econometric, metropolitan, spillover, city, externality, geography, geographic

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:
Metropolitan Statistical Area, Census of Manufactures, Standard Industrial Classification, Wal-Mart, Economic Census, Consolidated Metropolitan Statistical Areas, Heckscher-Ohlin

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