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Dartboard tests for the location quotient

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Author Info
Guimarães, Paulo
Figueiredo, Octávio
Woodward, Douglas

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Abstract

In this paper we reinterpret the location quotient, the commonly employed measure of regional industrial agglomeration, as an estimator derived from Ellison and Glaeser [Ellison, G., and Glaeser, E., 1997. Geographic concentration in U.S. manufacturing industries: a dartboard approach. Journal of Political Economy 105 (5), 889-927.] dartboard framework. This approach provides a theoretical foundation on which to build statistical tests for the measure. With a simple application, we show that these tests provide valuable information about the accuracy of the location quotient. The tests are relatively easy to implement using regional employment and establishment data.

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File URL: http://www.sciencedirect.com/science/article/B6V89-4VC7DT5-1/2/db986af187af1384c3bd5d7bf1eb0fc9
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Publisher Info
Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 39 (2009)
Issue (Month): 3 (May)
Pages: 360-364
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Handle: RePEc:eee:regeco:v:39:y:2009:i:3:p:360-364

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Web page: http://www.elsevier.com/locate/regec

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Related research
Keywords: Location quotient Dartboard model Industrial location Agglomeration;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dan O'Donoghue & Bill Gleave, 2004. "A Note on Methods for Measuring Industrial Agglomeration," Regional Studies, Taylor and Francis Journals, vol. 38(4), pages 419-427, June. [Downloadable!] (restricted)
  2. Octávio Figueiredo & Paulo Guimarães & Douglas Woodward, 2007. "Localization Economies and Establishment Scale: A Dartboard Approach," FEP Working Papers 247, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  3. Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Paulo Guimarães & Octávio Figueiredo & Douglas Woodward, 2007. "Measuring The Localization Of Economic Activity: A Parametric Approach," Journal of Regional Science, Blackwell Publishing, vol. 47(4), pages 753-774. [Downloadable!] (restricted)
  5. Tomoya Mori & Koji Nishikimi & Tony E. Smith, 2005. "A Divergence Statistic for Industrial Localization," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 635-651, December. [Downloadable!] (restricted)
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  6. Duranton, Gilles & Henry G Overman, 2003. "Testing for Localisation Using Micro-Geographic Data," Royal Economic Society Annual Conference 2003 69, Royal Economic Society. [Downloadable!]
    Other versions:
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