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Abstract

This paper uses a Poisson regression model to estimate the determinants of firm relocation from urban areas to rural areas between 2009 and 2012, including controls for land and labor costs, taxes, market size, agglomeration effects, natural amenities, but with a focus on measures of school quality. To the best of our knowledge, this is the first study of firm relocation between rural and urban areas within the United States and the only study to estimate the impacts of school quality on firm relocation behavior. Preliminary results from these models suggest that lower high school dropout rates and smaller class sizes may increase the expected count of firms relocating from urban to rural areas.

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