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dc.contributor.authorBroll, Udoen_US
dc.contributor.authorRoldán-Ponce, Antonioen_US
dc.contributor.authorWahl, Jack E.en_US
dc.date.accessioned2012-03-23en_US
dc.date.accessioned2012-03-27T13:34:36Z-
dc.date.available2012-03-27T13:34:36Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/56065-
dc.description.abstractDue to globalization competitive firms face increasing economic opportunities for locating their activities in countries, regions and cities that provide the best business environment for their specific needs. In our study we focus on the impact of economic risk and risk preferences upon regional allocation of investments. The source of risk stems from the difference in stochastic costs of location across regions. A comparative static analysis shows that capital allocation depends upon the firms' risk preferences. As a result regional agglomeration of investments may occur although the objective of the regional policy is aimed at the opposite. Our findings demonstrate the suitability of the two-moment approach as an alternative to the expected utility approach. The impact of changes in distribution parameters, such as the expected costs of location, the variance of costs of location and the correlation between locational costs, can be fully characterized via the elasticity of risk aversion. Elements of risk preferences beyond risk aversion prove to be very important to evaluate regional politics. This insight is of interest for empirical research in regional economics.en_US
dc.language.isoengen_US
dc.publisherTechn. Univ., Fac. of Business and Economics Dresdenen_US
dc.relation.ispartofseriesDresden discussion paper series in economics 01/12en_US
dc.subject.jelR12en_US
dc.subject.jelR30en_US
dc.subject.jelR38en_US
dc.subject.ddc330en_US
dc.subject.keywordregional allocationen_US
dc.subject.keywordregional economicsen_US
dc.subject.keywordregional policyen_US
dc.subject.keywordagglomerationen_US
dc.subject.keywordtwo-moment decision modelen_US
dc.subject.stwInvestitionen_US
dc.subject.stwStandortwahlen_US
dc.subject.stwRisikoen_US
dc.subject.stwKostenen_US
dc.subject.stwBallungsraumen_US
dc.subject.stwRegionalpolitiken_US
dc.subject.stwTheorieen_US
dc.titleRegional investment under uncertain costs of locationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn689171641en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:tuddps:0112-
Appears in Collections:Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden

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