1 Introduction
2 Spatial determinants of firm location within cities
2.1 Firm birth and agglomeration externalities
2.2 Relocation
3 Data
3.1 Grid-level analysis
3.2 Geo-coded firm-level panel dataset
3.3 Location characteristics
3.4 Descriptive statistics
Statistics | N | Mean | St. Dev | Min. | Max. |
---|---|---|---|---|---|
Firm Birth n | 12, 726 | 1.42 | 4.10 | 0 | 79 |
EDF n (lag) | 12, 726 | 6.40 | 17.94 | 0 | 398 |
EDF n * (lag) | 12, 726 | 50.56 | 112.22 | 0 | 1, 595 |
HEI n | 12, 726 | 0.05 | 0.32 | 0 | 7 |
HEI n * | 12, 726 | 0.44 | 1.23 | 0 | 12 |
Research Inst. n | 12, 726 | 0.05 | 0.32 | 0 | 8 |
Research Inst. n* | 12, 726 | 0.38 | 1.24 | 0 | 13 |
Commercial buildings n | 12, 726 | 319.40 | 546.78 | 0 | 9, 411 |
Commercial buildings n * | 12, 726 | 2, 506.05 | 3, 452.23 | 0 | 26, 163 |
prices | 12, 726 | 516.82 | 129.86 | 230.01 | 1, 490.69 |
Households | 12, 726 | 2, 030.25 | 2, 450.35 | 0 | 15, 539 |
Movers within n | 12, 726 | 0.07 | 0.43 | 0 | 15 |
Movers into n | 12, 726 | 0.76 | 2.59 | 0 | 76 |
4 Empirical strategy
4.1 Dependent variable
4.2 Empirical setup
5 Empirical results
Model: PPML | ||||
---|---|---|---|---|
Dep. Var.s: | Firm birth | Relocation | ||
Specification: | (1) | (2) | (3) | (4) |
ln(EDF n (lag)) | 0.56*** | − 0.55*** | 0.56*** | − 0.61*** |
(0.02) | (0.03) | (0.02) | (0.04) | |
ln(EDF n * (lag)) | 0.40*** | 0.13** | 0.55*** | 0.27*** |
(0.02) | (0.06) | (0.03) | (0.09) | |
Research Institutes n | 0.00 | 0.37*** | − 0.02* | 0.94*** |
(0.01) | (0.12) | (0.01) | (0.19) | |
Research Institutes n * | − 0.01*** | 0.01 | − 0.03*** | − 0.08 |
(0.00) | (0.04) | (0.01) | (0.06) | |
HEI n | − 0.01 | 0.08 | 0.01 | 0.17* |
(0.01) | (0.08) | (0.01) | (0.09) | |
HEI n * | 0.00 | − 0.01 | 0.00 | 0.12*** |
(0.00) | (0.03) | (0.01) | (0.03) | |
ln(Commercial buildings) n | 0.49*** | 1.65*** | 0.52*** | 2.09*** |
(0.02) | (0.13) | (0.03) | (0.17) | |
ln(Commercial buildings) n * | − 0.29*** | − 0.31 | − 0.33*** | − 0.91*** |
(0.03) | (0.21) | (0.04) | (0.26) | |
ln(prices) | 0.17*** | 0.29*** | 0.09 | 0.08 |
(0.6) | (0.08) | (0.08) | (0.10) | |
ln(Households) | 0.01 | − 0.59** | − 0.13*** | − 1.42*** |
(0.01) | (0.24) | (0.02) | (0.29) | |
Fixed effects | ||||
Year | ✓ | ✓ | ✓ | ✓ |
City | ✓ | ✓ | ||
Grid | ✓ | ✓ | ||
Summary statistics | ||||
Observations | 12,726 | 12,726 | 12,726 | 12,726 |
5.1 Firm birth determinants
5.2 Relocation determinants
5.3 Robustness
FB | M into n | Firms n (lag) | firms n ∗ (lag) | CommB n | CommB n ∗ | Households | prices | HEI n | HEI n ∗ | RI n | RI n ∗ | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Firm Birth n | 1 | 0.820 | 0.870 | 0.740 | 0.790 | 0.680 | 0.520 | 0.210 | 0.330 | 0.610 | 0.250 | 0.460 |
Movers into n | 0.820 | 1 | 0.870 | 0.760 | 0.710 | 0.620 | 0.430 | 0.210 | 0.330 | 0.570 | 0.220 | 0.410 |
EDF n (lag) | 0.870 | 0.870 | 1 | 0.820 | 0.800 | 0.690 | 0.510 | 0.270 | 0.350 | 0.610 | 0.250 | 0.470 |
EDF n ∗ (lag) | 0.740 | 0.760 | 0.820 | 1 | 0.690 | 0.840 | 0.530 | 0.340 | 0.370 | 0.700 | 0.280 | 0.560 |
Commercial buildings n | 0.790 | 0.710 | 0.800 | 0.690 | 1 | 0.820 | 0.700 | 0.220 | 0.330 | 0.620 | 0.270 | 0.510 |
Commercial buildings n ∗ | 0.680 | 0.620 | 0.690 | 0.840 | 0.820 | 1 | 0.660 | 0.290 | 0.380 | 0.710 | 0.310 | 0.610 |
Households | 0.520 | 0.430 | 0.510 | 0.530 | 0.700 | 0.660 | 1 | 0.120 | 0.190 | 0.420 | 0.120 | 0.290 |
prices | 0.210 | 0.210 | 0.270 | 0.340 | 0.220 | 0.290 | 0.120 | 1 | 0.073 | 0.160 | 0.080 | 0.200 |
HEI n | 0.330 | 0.330 | 0.350 | 0.370 | 0.330 | 0.380 | 0.190 | 0.073 | 1 | 0.350 | 0.360 | 0.320 |
HEI n ∗ | 0.610 | 0.570 | 0.610 | 0.700 | 0.620 | 0.710 | 0.420 | 0.160 | 0.350 | 1 | 0.310 | 0.660 |
Research Inst. n | 0.250 | 0.220 | 0.250 | 0.280 | 0.270 | 0.310 | 0.120 | 0.080 | 0.360 | 0.310 | 1 | 0.320 |
Research Inst. n ∗ | 0.460 | 0.410 | 0.470 | 0.560 | 0.510 | 0.610 | 0.290 | 0.200 | 0.320 | 0.660 | 0.320 | 1 |
Model: PPML | ||
---|---|---|
Dep. Var | Firm birth | Relocation |
Specification: | (1) | (2) |
ln(EDF n (lag)) | 0.58***(0.05) | 0.63*** (0.06) |
ln(EDF n ∗ (lag)) | 0.40*** (0.07) | 0.51*** (0.09) |
Research Institutes n | 0.03 (0.02) | 0.02 (0.02) |
Research Institutes n ∗ | 0.00 (0.01) | − 0.02(0.01) |
HEI n | − 0.00 | − 0.00 |
(0.02) | (0.03) | |
HEI n ∗ | − 0.02∗ | 0.03** |
(0.01) | (0.01) | |
ln*(Commercial buildings) n | 0.43*** | 0.39*** |
(0.07) | (0.08) | |
ln*(Commercial buildings) n ∗ | − 0.27*** | − 0.28** |
(0.09) | (0.11) | |
ln(prices) | 0.18 | − 0.14 |
(0.13) | (0.15) | |
ln(Households) | − 0.01 | − 0.12*** |
(0.03) | (0.03) | |
Bus stops | 0.00 | 0.00 |
(0.00) | (0.00) | |
Motorway access | 0.04** | 0.00 |
(0.02) | (0.03) | |
Local rail stations | 0.00 | − 0.00 |
(0.00) | (0.00) | |
Amenities | − 0.00 | − 0.00** |
(0.00) | (0.00) | |
Summary statistics | ||
Observations | 1818 | 1818 |
FB | M into n | Firms n (lag) | firms n ∗ (lag) | Local rail stations | Motorway access | Bus stops | Amenities | |
---|---|---|---|---|---|---|---|---|
Firm Birth n | 1 | 0.840 | 0.920 | 0.800 | 0.300 | 0.022 | 0.320 | 0.760 |
Movers into n | 0.840 | 1 | 0.860 | 0.760 | 0.260 | 0.003 | 0.290 | 0.670 |
EDF n (lag) | 0.920 | 0.860 | 1 | 0.830 | 0.320 | 0.012 | 0.330 | 0.810 |
EDF n ∗ (lag) | 0.800 | 0.760 | 0.830 | 1 | 0.320 | 0.038 | 0.350 | 0.720 |
Local Rail Stations | 0.300 | 0.260 | 0.320 | 0.320 | 1 | − 0.017 | 0.180 | 0.370 |
Motorway Access | 0.022 | 0.003 | 0.012 | 0.038 | − 0.017 | 1 | 0.110 | 0.009 |
Bus Stops | 0.320 | 0.290 | 0.330 | 0.350 | 0.180 | 0.110 | 1 | 0.430 |
Amenities | 0.760 | 0.670 | 0.810 | 0.720 | 0.370 | 0.009 | 0.430 | 1 |
Model: PPML | ||
---|---|---|
Dep. Var.: Number of Movers within grid | ||
Specification | (1) | (2) |
ln(EDF n (lag)) | 1.49*** | 1.13*** |
(0.07) | (0.09) | |
ln(EDF n (lag)) | 0.15 | − 0.20 |
(0.10) | (0.17) | |
Research Institutes n | 0.02 | − 0.17 |
(0.03) | (0.27) | |
Research Institutes n ∗ | 0.04*** | − 0.07 |
(0.01) | (0.10) | |
HEI n | 0.05 | 0.09 |
(0.03) | (0.15) | |
HEI n ∗ | − 0.06*** | − 0.08* |
(0.02) | (0.05) | |
ln(Commercial buildings) n | 0.15* | 0.85** |
(0.09) | (0.35) | |
ln(Commercial buildings) n ∗ | − 0.29** | − 1.24*** |
(0.12) | (0.45) | |
ln(prices) | 0.17 | 0.14 |
(0.21) | (0.15) | |
ln(Households) | − 0.05 | − 1.34** |
(0.04) | (0.56) |
Fixed effects | ||
---|---|---|
Year | ✓ | ✓ |
City | ✓ |
Grid | v | |
---|---|---|
Observations | 12,726 | 12,726 |
Model: PPML | ||||
---|---|---|---|---|
Dep. Var.s: | Firm birth | Relocation | ||
Specification: | (1) | (2) | (3) | (4) |
ln(EDF n (lag)) | 0.67*** | − 0.24*** | 0.74*** | − 0.43*** |
(0.03) | (0.06) | (0.05) | (0.10) | |
ln(EDF n ∗ (lag)) | 0.38*** | 0.20 | 0.49*** | 0.38* |
(0.05) | (0.14) | (0.07) | (0.21) | |
Research Institutes n | 0.01 | 0.38** | − 0.01 | 1.06*** |
(0.01) | (0.17) | (0.02) | (0.29) | |
Research Institutes n ∗ | 0.00 | − 0.01 | − 0.02** | − 0.05 |
(0.01) | (0.06) | (0.01) | (0.08) | |
HEI n | − 0.02 | 0.06 | 0.01 | 0.23 |
(0.01) | (0.11) | (0.02) | (0.15) | |
HEIn n ∗ | 0.00 | 0.01 | 0.01 | 0.12** |
(0.01) | (0.04) | (0.01) | (0.05) | |
ln(Commercial buildings) n | 0.29*** | 1.19*** | 0.24*** | 2.15*** |
(0.04) | (0.25) | (0.05) | (0.36) | |
ln(Commercial buildings) n ∗ | − 0.37*** (0.06) | − 0.10 (0.38) | − 0.37*** (0.08) | − 1.23** (0.52) |
ln(prices) | 0.06 (0.09) | 0.22** (0.11) | − 0.07 (0.12) | 0.03 (0.15) |
ln(Households) | − 0.02 (0.02) | − 0.48 (0.43) | − 0.10*** (0.03) | − 2.07*** (0.61) |
Fixed effects | ||||
---|---|---|---|---|
Year | ✓ | ✓ | ✓ | ✓ |
City | ✓ | ✓ | ||
Grid | v | ✓ |
Summary statistics | ||||
---|---|---|---|---|
Observations | 8729 | 8729 | 8729 | 8729 |
Model: PPML | ||
---|---|---|
Dep. Var.: Firmbirth in grids (ICT subsample) | ||
Specification: | (1) | (2) |
ln(ICT firms) (1lag) n | 0.52*** | − 0.75*** |
(0.02) | (0.04) | |
ln(ICT firms) (1lag) n ∗ | 0.41*** | 0.16** |
(0.03) | (0.06) | |
Research Institutes n | − 0.02 | 0.53*** |
(0.01) | (0.17) | |
Research Institutes n ∗ | − 0.02*** | − 0.04 |
(0.01) | (0.06) | |
HEI n | 0.01 | 0.05 |
(0.01) | (0.10) | |
HEI n ∗ | 0.00 | 0.01 |
(0.01) | (0.04) | |
ln(Commercial buildings) n | 0.58*** | 1.52*** |
(0.03) | (0.18) | |
ln(Commercial buildings) n ∗ | − 0.23*** | 0.20 |
(0.04) | (0.27) | |
ln(prices) | 0.39*** | 0.38*** |
(0.08) | (0.10) | |
ln(Households) | 0.02 | − 0.26 |
(0.02) | (0.33) |
Fixed effects | ||
---|---|---|
Year | ✓ | ✓ |
City | ✓ |
Grid | v | |
---|---|---|
Observations | 12,726 | 12,726 |