Firm Size and Geographical Aggregation: An Empirical Appraisal in Industrial Location Firm Size and Geographical Aggregation: An Empirical Appraisal in Industrial Location

Abstract This paper asses the relevance of size discrimination and dis-aggregate data in studying the decision to locate a start-up concern. Essentially we compare three econometric speci…cations using Catalan data: i) a multinomial logit with 4 and 41 alternatives (provinces and comarques, respectively) in which …rm size is the main covariate; ii) a condicional logit with 4 and 41 alternatives including attributes of the sites as well as interactions size-site; iii) a Poisson with the comarques and all the spatial choice set (721 municipalities). The empirical results suggest that ignoring these issues may produce misleading conclusions