Spatial organization of firms: the decision to split production and administration

The research in this paper was conducted while the authors were Special Sworn Status researchers of the US Census Bureau at the Boston Census Research Data Center (BRDC). Research results and conclusions expressed are those of the authors and do not necessarily reflect the views of the Census Bureau, the Federal Reserve Bank of Chicago, or the Federal Reserve System. This paper has been screened to insure that no confidential data are revealed. Support for this research from NSF (award no. 0111803 and 0427889) is gratefully acknowledged. For helpful comments and discussions, the authors thank Robert Porter (Editor), Thomas Hubbard, two anonymous referees and participants in seminars at the 2003 AEA and RSAI meetings, the Federal Reserve Bank of Chicago and the Center for Economic Studies. All errors are ours.