Estimating dynamic localization economies

The inadvertent success of the specialization index and the location quotient

Datos Bibliográficos

ID10406366
AutoresAndrea Fracasso (0000-0003-1581-8481, University of Trento), Giuseppe Vittucci Marzetti (0000-0003-3093-8000, University of Milano-Bicocca, autor de correspondencia)
Año2017
Volumen52
Número1
Páginas119-132
Fecha de publicación2017-03-22
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaRegional Studies (JOURNAL)
Identificadores de la revistaISSN: 0034-3404 • E-ISSN: 1360-0591
EditorialRoutledge (PUBLISHER • GB)
DOI10.1080/00343404.2017.1281388
OpenAlexW2602969754
IdiomaEN
Citas recibidas10
Referencias citadas45

Estimating dynamic localization economies: the inadvertent success of the specialization index and the location quotient. Regional Studies. After addressing definitional issues on the concepts of concentration and specialization, the paper reviews the justifications for and the interpretation of some indicators of localization economies used in the empirical literature on agglomeration economies: specialization indexes and location quotients. A simulation exercise shows under what conditions certain specifications lead to biased estimations of dynamic localization (Marshall–Arrow–Romer – MAR) externalities. The results suggest that applied researchers can choose between the size of the local industry, the specialization index and the location quotient to proxy for these externalities as far as they also encompass a correct proxy for the size of the local economy

Arrow · Econometrics · Economic base analysis · Economic geography · Economics · Economies of agglomeration · Economy · Externality · Herfindahl index · Index (typography · Microeconomics · Proxy (statistics · Quotient · Statistics · Computer Science · Fiscal Policy and Economic Growth · Mathematics · Regional Economics and Spatial Analysis · Spatial and Panel Data Analysis