TY  - RPRT
        AU  - Borck, Rainald
AU  - Pflüger, Michael P.
AU  - Wrede, Matthias
        TI  - A Simple Theory of Industry Location and Residence Choice
        PY  - 2007/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2862
        UR  - https://www.iza.org/publications/dp2862
        AB  - This paper provides a simple theory of geographical mobility which simultaneously explains people’s choice of residences in space and the location of industry. Residences are chosen on the basis of the utility which mobile households obtain across locations. The spatial pattern of industry is determined by the location decision of a scarce essential factor of production which seeks to obtain the highest possible economic return. Our theory comprehends applications to commuting and physical capital mobility. Referring to the decline in mobility costs, we are able to explain that long-distance commuting and foreign direct investment have increased and that industrial activity has become more concentrated both within as well as across countries.
        KW  - industry location
KW  - capital mobility
KW  - labour mobility
KW  - agglomeration
KW  - commuting
KW  - migration
        ER  -