A Stochastic Theory of Geographic Concentration and the Empirical Evidence in Germany
AbstractA stochastic model of the evolution of the firm population in a region and industry is developed. This model is used to make predictions about the expected probability distribution of the firm number in regions and their dynamics. Data on the spatial distribution of firms in Germany is used to check the predictions and estimate the parameters of the model. This is done for 196 industries separately.
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Bibliographic InfoPaper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Economics and Evolution with number 2005-23.
Length: 28 pages
Date of creation: Sep 2006
Date of revision:
Find related papers by JEL classification:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-11 (All new papers)
- NEP-GEO-2006-09-11 (Economic Geography)
- NEP-URE-2006-09-11 (Urban & Real Estate Economics)
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