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Shift - share analysis as a linear model

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Author Info
D C Knudsen
R Barff
Abstract

Shift - share analysis continues to be popular among geographers, regional scientists, and planners despite widespread criticism of the method. In this paper, it is argued that insufficient attention has been paid to model-based approaches to shift - share analysis. It is shown that conventional shift - share and stochastic shift - share yield identical conclusions. Stochastic shift - share is easily extended dynamically and along the lines suggested by Arcelus. Thus, in the stochastic models several of the most persistent criticisms of the technique are addressed by allowing for testing of hypotheses, while preserving the practicality of the conventional accounting approach. It is suggested that stochastic shift - share should be used whenever practical.

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Publisher Info
Article provided by Pion Ltd, London in its journal Environment and Planning A.

Volume (Year): 23 (1991)
Issue (Month): 3 (March)
Pages: 421-431
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Handle: RePEc:pio:envira:v:23:y:1991:i:3:p:421-431

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  1. Blien, Uwe & Wolf, Katja, 2002. "Regional development of employment in eastern Germany. An analysis with an econometric analogue to shift-share techniques," ERSA conference papers ersa02p263, European Regional Science Association. [Downloadable!]
  2. Thomas de Graaff & Raymond J.G.M. Florax & Peter Nijkamp & Aura Reggiani, 1998. "Diagnostic Tools for Nonlinearity in Spatial Models," Tinbergen Institute Discussion Papers 98-072/3, Tinbergen Institute. [Downloadable!]
  3. Cuadrado-Roura, Juan R. & Mancha Navarro, Tomas & Garrido Yserte, Ruben, 1999. "Real versus virtual growth: An Analysis of regional Dynamics," ERSA conference papers ersa99pa195, European Regional Science Association. [Downloadable!]
  4. Klinger, Sabine & Wolf, Katja, 2008. "What explains changes in full-time and part-time employment in Western Germany? : a new method on an old question," IAB Discussion Paper 200807, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  5. Willem Johannes Maria Heijman & Cornelis Martijn Van der Heide & Raymond J.G.M. Florax & Marc E. Loman, 1998. "Regional Economic growth and accessibility: The case of the Netherlands," ERSA conference papers ersa98p436, European Regional Science Association. [Downloadable!]
  6. Daniel J. Graham, Nigel Spence, 1998. "A Productivity Growth Interpretation of the Labour Demand Shift--Share Model," Regional Studies, Taylor and Francis Journals, vol. 32(6), pages 515-525, August. [Downloadable!] (restricted)
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