CRC/TRR 190/3: Location decisions of firms (SP B10*)

Project B10 develops a quantitative spatial framework that allows investigating the role of uncertainty in location choices of economic agents – a feature that is absent in current neoclassical spatial models. The project’s theoretical and empirical work will account for variable labor supply via the location decisions of workers. Much of the empirical work will be concerned with collocation effects, i.e., how the effects of local investments by large firms affect other firms and workers. The team also investigates the ways in which the location decisions differ between the pre- and the post-pandemic economy. A further focus lies on spatial policies that aim to influence location decisions.