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Industrial location and interpretation of zero counts

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  • Daniel Liviano
  • Josep-Maria Arauzo-Carod

Abstract

This paper intends to shed light on the treatment of zero counts in count data (CD) industrial location models. An excess of zeros and overdispersion has been dealt with by estimating mixture models such as negative binomial, zero-inflated and hurdle models. However, the existence of a considerable share of zero counts could also have an economic interpretation that is worth investigating. To do so, several CD models focussing specifically on zero-inflated and hurdle models have been fitted and compared to examine empirical data for Catalonia. Copyright Springer-Verlag 2013

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  • Daniel Liviano & Josep-Maria Arauzo-Carod, 2013. "Industrial location and interpretation of zero counts," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(2), pages 515-534, April.
    • Handle: RePEc:spr:anresc:v:50:y:2013:i:2:p:515-534
    DOI: 10.1007/s00168-012-0502-8
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    Keywords

    C21; L26; R12;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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