Modeling industrial location decisions in U.S. counties

following concentrated likelihood function,

I r ∖∖     1   n ns   ^exp(^θ0y sc)

log L = S S ns^{c k}4 " PC= 1 expose).

S Cs       _n S Cs

log L = Σ Σnsc ^log( ns)) ⁺ Σ ΣnscPc∕s.

s=1 c=1                   s=1 c=1

where,

_    exp(β⁰ Zsc)

p^C/S~ PC= ι exp(β⁰zsc).

is the probability of an investor locating in a particular county, conditional
on the chosen state. The first term in expression (A1) is a constant. The
second term is the log-likelihood for a discrete choice problem where the
choice sets are restricted to the states where the investments were observed.

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