TY  - BOOK
AU  - Almazan,Andres
AU  - de Motta,Adolfo
AU  - Titman,Sheridan
ED  - National Bureau of Economic Research.
TI  - Firm Location and the Creation and Utilization of Human Capital
T2  - NBER working paper series
PY  - 2003///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - November 2003; Hardcopy version available to institutional subscribers
N2  - This paper presents a theory of location choice that draws on insights  from the incomplete contracts and investment flexibility (real option) literatures. We provide conditions under which human capital is more efficiently created and better utilized within industrial clusters that contain similar firms. Our analysis indicates that location choices are influenced by the extent to which training costs are borne by firms versus employees as well as by the uncertainty about future productivity shocks and the ability of firms to modify the scale of their operations. Extensions of our model consider, among other things, endogenous technological choices by firms in clusters and how behavioral biases (i.e., managerial overconfidence about their firms' prospects) can affect firms' location choices
UR  - https://www.nber.org/papers/w10106
UR  - http://dx.doi.org/10.3386/w10106
ER  -