Estimable equilibrium models of locational sorting and their role in development economics
AbstractGeography plays a prominent role in many problems in development economics--directly in analyses of the spatial distribution of important variables like poverty and productivity, and indirectly through the role of local spillovers in economic growth. Empirical work on these topics is complicated by the fact that the behavioral consequences of such spillovers cannot be distinguished from those of unobservable local attributes using only the observed location decisions of individuals or firms. This problem can be solved with an instrumental variables strategy derived from the internal logic of a structural model of residential sorting. We show practically how the strategy is implemented, provide intuition for the instruments and econometric identification, demonstrate how traditional techniques overstate agglomeration externalities, and use the model to value changes in spillovers from urban centers. Copyright 2005, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Oxford University Press in its journal Journal of Economic Geography.
Volume (Year): 5 (2005)
Issue (Month): 1 (January)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://joeg.oxfordjournals.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kanbur, Ravi & Venables, Anthony J., 2005.
"SPATIAL INEQUALITY AND DEVELOPMENT Overview of UNU-WIDER Project,"
127127, Cornell University, Department of Applied Economics and Management.
- Ravi Kanbur, 2005. "Spatial Inequality and Development: Overview of UNU-WIDER Project," Working Papers id:215, eSocialSciences.
- Sriniketh Nagavarapu, 2008. "Brazilian Ethanol: A Gift or Threat to the Environment and Regional Development?," Discussion Papers 07-039, Stanford Institute for Economic Policy Research.
- Lall, Somik V. & Timmins, Christopher & Yu, Shouyue, 2009. "Connecting lagging and leading regions : the role of labor mobility," Policy Research Working Paper Series 4843, The World Bank.
- Koster, Hans R.A. & van Ommeren, Jos & Rietveld, Piet, 2014. "Estimation of semiparametric sorting models: Explaining geographical concentration of business services," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 14-28.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.