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The Agglomeration of Headquarters

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Author Info
J Vernon Henderson
James Davis

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Abstract

This paper uses a micro data set on auxiliary establishments from 1977 to 1997 in order to investigate the determinants of headquarter agglomerations and the underlying economic base of many larger metro areas. The significance of headquarters in large urban settings is their ability to facilitate the spatial separation of their white collar activities from remote production plants. The results show that separation benefits headquarters in two main ways: the availability of di?erentiated local service input suppliers and the scale of other headquarter activity nearby. A wide diversity of local service options allows the headquarters to better match their various needs with specific experts producing service inputs from whom they learn, which improves their productivity. Headquarters also benefit from other headquarter neighbors, although such marginal scale benefits seem to diminish as local scale rises.

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File URL: http://webserver01.ces.census.gov/index.php/ces/1.00/cespapers?down_key=101688
File Format: application/pdf
File Function: First version, 2004
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Publisher Info
Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 04-02.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 36 pages
Date of creation: Feb 2004
Date of revision:
Handle: RePEc:cen:wpaper:04-02

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Web page: http://www.ces.census.gov

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Duncan Black & Vernon Henderson, 2003. "Urban evolution in the USA," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 343-372, October.
  3. Paulo Guimaraes & Octavio Figueiredo & Douglas Woodward, 2000. "A tractable approach to the firm location decision problem," Working Papers 2, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho. [Downloadable!]
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  4. Yukako Ono, 2001. "Outsourcing Business Service and the Scope of Local Markets," Working Papers 01-15, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  9. Goldberg, Pinelopi Koujianou, 1995. "Product Differentiation and Oligopoly in International Markets: The Case of the U.S. Automobile Industry," Econometrica, Econometric Society, vol. 63(4), pages 891-951, July. [Downloadable!] (restricted)
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  13. repec:cup:etheor:v:13:y:1997:i:5:p:667-78 is not listed on IDEAS
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  16. Donald Siegel & Zvi Griliches, 1991. "Purchased Services, Outsourcing, Computers, and Productivity in Manufacturing," NBER Working Papers 3678, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  18. Leslie E. Papke, 1991. "Interstate Business Tax Differentials and New Firm Location: Evidence from Panel Data," NBER Working Papers 3184, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  22. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
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  23. Lichtenberg, Frank R & Siegel, Donald, 1990. "The Effect of Ownership Changes on the Employment and Wages of Central Office and Other Personnel," Journal of Law & Economics, University of Chicago Press, vol. 33(2), pages 383-408, October.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fabrice Defever, 2006. "Functional fragmentation and the location of multinational firms in the enlarged Europe," Cahiers de la Maison des Sciences Economiques bla06052, Université Panthéon-Sorbonne (Paris 1). [Downloadable!]
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  2. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens III, 2005. "Firm Fragmentation and Urban Patterns," NBER Working Papers 11839, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Fujita, Masahisa & Thisse, Jacques-François, 2003. "Globalization and the Evolution of the Supply Chain: Who Gains and Who Loses?," CEPR Discussion Papers 4152, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Strauss-Kahn, Vanessa & Vives, Xavier, 2006. "Why and where do headquarters move?," IESE Research Papers D/650, IESE Business School.
    Other versions:
  5. Mohammad Arzaghi, 2005. "Quality Sorting and Networking: Evidence from the Advertising Agency Industry," Working Papers 05-16, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  6. Baldwin, John R. & Brown, W. Mark, 2005. "Foreign Multinationals and Head Office Employment in Canadian Manufacturing Firms," Economic Analysis (EA) Research Paper Series 2005034e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
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