The goal of project B10 is to study the determinants and local economic effects of firm location decisions, both theoretically and empirically. One key ambition is to develop a quantitative spatial framework that incorporates uncertainty in the location choices of economic agents, addressing a gap in neoclassical spatial models. Using a combination of theoretical modeling and empirical analysis, project B10 examines the impact of local investments by large firms on their surroundings, with a particular focus on the role of collocation effects and agglomeration effects on productivity. A central aspect of the research is to explore how these dynamics have evolved in the post-pandemic economy, given the rise of remote work. Ultimately, the project seeks to inform place-based policies by providing insights into how temporary policy measures, such as subsidies for large firms, can generate lasting economic benefits in struggling regions.
Rationality and Competition
Collaborative Research Center TRR 190