The general aim of investment incentives is to influence the locational decisions of investors and thus to reap the positive effects of foreign direct investment (FDI).
Despite the view that mathematical methods of locational analysis are too sophisticated for use in many of these nations, several studies have demonstrated the usefulness of such methods in the locational decision-making process.
Thus, solutions to this problem reflect the stability of locational decisions along time.
"Multinationals have more opportunities than purely domestic businesses to make locational decisions," says Bill Dodwell, head of tax policy at the global accountancy firm Deloitte.
For example, de Palma et al. (1989), Benati (1999) and Marianov et al. (2008) discuss non-linear model formulations for discrete locational decisions.
Using two test networks we illustrate that energy-only markets can lead to suboptimal locational decisions for generation capacity and thus imply excessive network expansion.
This approach reduces the concern that any differences we might find are related to earlier locational decisions of Māori and non-Māori, including those related to the impact of the economic reforms, and not to underlying mobility propensities.
Relative labour demand depends on relative wages and country-specific characteristics x d that affect firms' locational decisions and do not change over time (i.e. are a source of permanent differences in employment levels): {z}_{i,t+1}-{z}_{i,t}=-a{w}_{i,t}+{x}_{di}+{varepsilon}_{i,t+1}^d, (2 where ( {varepsilon}_{i,t}^d ) is a country-specific labour demand shock.
Florida drew upon his past research on the geographical aspects of wealth generation and locational decisions of members of the creative class, as well as theories and opinions of other academics, like Jane Jacobs, and even those who have been critical of Florida's work, like Tim Harford.
