Abstract
This paper is centered on two basic statements: i) the birth of new firms is spatially related to location factors endowment and ii) the set of location factors can support only up to a given number of firms.
The paper firstly defines the regional ex-ante demand for firms as a function of location factors set. In the following step a definition of regional equilibrium stock of firms is given and a static equilibrium model of new firms birth is built up. In a dynamic disequilibrium model the net birth of firms is a function of two disequilibrium terms: a sectoral and a regional one.
The sectoral disequilibrium depends on the industry production structure, the regional disequilibrium is linked to the adaptation elasticity of location factors set to an exogenous shock.
Finally, a first estimation on Italian data is performed, on the basis of which some new lines of analysis are suggested.
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Bramanti, A., Girardi, R. New firm location: An equilibrium model and its disequilibrium dynamics. Small Bus Econ 6, 151–163 (1994). https://doi.org/10.1007/BF01065187
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DOI: https://doi.org/10.1007/BF01065187