Non-linear externalities in firm locations : a computational estimation metho

Giulio Bottazzi; Ugo M. Gragnollati; Fabio Vanni

A stochastic discrete choice model and its related estimation method are presented which allow to disentangle non-linear externalities from the intrinsic features of the objects of choice and from the idiosyncratic preferences of agents. Having veried for the ergodicity of the underlying stochastic process, parameter estimates are obtained through numerical methods and so is their statistical signicance. In particular, optimization rests on successive parabolic interpolation. Finally, the model and its related estimation method are applied to the case of rm localization using Italian sectoral census data.

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Alternative title:	Non-linear externalities in firm locations : a computational estimation method
Year of publication:	2014
Authors:	Bottazzi, Giulio ; Gragnollati, Ugo M. ; Vanni, Fabio
Publisher:	Pisa : Laboratory of Economics and Management, Sant'Anna School of Advanced Studies
Subject:	Externalities \| Heterogeneity \| Computational methods \| Firm localization \| Externer Effekt \| Theorie \| Theory \| Betriebliche Standortwahl \| Firm location choice \| Betrieblicher Standort \| Firm location \| Agglomerationseffekt \| Agglomeration effect \| Schätzung \| Estimation