Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 14-28 |
| Journal | Regional Science and Urban Economics |
| Volume | 44 |
| Issue number | January |
| DOIs | |
| Publication status | Published - 2014 |
Fingerprint
Cite this
}
Estimation of semiparametric sorting models: Explaining geographical concentration of business services. / Koster, H.R.A.; van Ommeren, J.N.; Rietveld, P.
In: Regional Science and Urban Economics, Vol. 44, No. January, 2014, p. 14-28.Research output: Contribution to Journal › Article › Academic › peer-review
TY - JOUR
T1 - Estimation of semiparametric sorting models: Explaining geographical concentration of business services
AU - Koster, H.R.A.
AU - van Ommeren, J.N.
AU - Rietveld, P.
PY - 2014
Y1 - 2014
N2 - We introduce a sorting model for firms where firm-specific profit coefficients can be identified given information on location choices of firms. It is shown that one may estimate such a model using a semiparametric Poisson approach. We apply this approach by examining the effects of specialization and diversity at the local level on profitability of business services firms. We find that, for most firms, profitability increases with specialization and decreases with diversity. In line with the literature, it is shown that specialization is particularly profitable for large and older firms, whereas diversity is relatively more profitable for smaller and younger firms. © 2013 Elsevier B.V.
AB - We introduce a sorting model for firms where firm-specific profit coefficients can be identified given information on location choices of firms. It is shown that one may estimate such a model using a semiparametric Poisson approach. We apply this approach by examining the effects of specialization and diversity at the local level on profitability of business services firms. We find that, for most firms, profitability increases with specialization and decreases with diversity. In line with the literature, it is shown that specialization is particularly profitable for large and older firms, whereas diversity is relatively more profitable for smaller and younger firms. © 2013 Elsevier B.V.
U2 - 10.1016/j.regsciurbeco.2013.10.001
DO - 10.1016/j.regsciurbeco.2013.10.001
M3 - Article
VL - 44
SP - 14
EP - 28
JO - Regional Science and Urban Economics
JF - Regional Science and Urban Economics
SN - 0166-0462
IS - January
ER -