Measuring the localization of economic activity: A parametric approach

• Type: Article in International Scientific Journal
• Date: 2007

Authors

Paulo Guimaraes (Author) FEP; Octávio Figueiredo (Author) FEP; Douglas Woodward (Author) Other

Journal

Title: Journal of Regional Science

Vol. 47 No. 4

Pages: 753-774

ISSN: 0022-4146

Publisher: Wiley-Blackwell

Indexing

ISI Web of Knowledge - 30 Citations

ISI Web of Science

Scopus - 34 Citations

Scientific classification

FOS: Social sciences > Other social sciences

CORDIS: Social sciences > Economics

Other information

Authenticus ID: P-004-78G

DOI: 10.1111/j.1467-9787.2007.00527.x

Abstract (EN): The index proposed by Ellison and Glaeser (1997) is now well established as the preferred method for measuring the localization of economic activity In this paper we develop an alternative localization measure that is consistent with the theoretical framework originally proposed by Ellison and Glaeser. Our measure follows directly from the Random Utility (Profit) Maximization (RUM) location decision model. Because the distributional assumptions in our model are fully compatible with RUM, we are able to offer a more efficient measure of industry clustering.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 22