Spatial organization of firms

Yukako Ono
Authors registered in the RePEc Author Service: James Creese Davis

No WP-03-30, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: A firm’s production activities are often supported by non-production activities. Among these activities are administrative units including headquarters, which process information both within and between firms. Often firms physically separate such administrative units from their production activities and create stand alone Central Administrative Offices (CAO). However, having its activities in multiple locations potentially imposes significant internal firm face-to-face communication costs. What types of firms are more likely to separate out such functions? If firms do separate administration and production, where do they place CAOs and why? How often do firms open and close, or relocate CAOs? This paper documents such firms’ decisions on their spatial organization by using micro-level data from the U.S. Census Bureau.

Keywords: Industrial; organization; (Economic; theory) (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-geo, nep-ind and nep-lam
Date: 2003
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