Location of Headquarter Growth During the 90s

FRB Chicago Working Paper 2002-19

43 Pages Posted: 17 Mar 2003

See all articles by Thomas Klier

Thomas Klier

Federal Reserve Bank of Chicago

Date Written: December 2002


This paper examines the location of headquarter growth of large public companies during the 1990s. Headquarters continue to be attracted by large metropolitan areas. Yet, among that group they continue to disperse into the medium-sized centers. The model results suggest that headquarter growth is elastic with respect to population growth. In addition, average January temperature emerges as a predictor of headquarter growth. Furthermore, the paper identifies 6 different categories of gross flows underlying the net change of headquarters observed during the 90s. There is strong variation among the 50 largest metro areas in terms of the composition of these gross flows. On average, entry and exit represent over 2/3 of all gross flow activity. Including information on the composition of gross flows noticeably improves the formal model.

Suggested Citation

Klier, Thomas, Location of Headquarter Growth During the 90s (December 2002). FRB Chicago Working Paper 2002-19, Available at SSRN: https://ssrn.com/abstract=367169 or http://dx.doi.org/10.2139/ssrn.367169

Thomas Klier (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604-1413
United States

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