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A Stochastic Theory of Geographic Concentration and the Empirical Evidence in Germany

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  • T. Brenner

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Abstract

A 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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File URL: ftp://papers.econ.mpg.de/evo/discussionpapers/2005-23.pdf
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Paper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Economics and Evolution with number 2005-23.

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Length: 28 pages
Date of creation: Sep 2006
Date of revision:
Handle: RePEc:esi:evopap:2005-23

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Keywords: geographic concentration; industry dynamics; local clusters; empirical methodology.;

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  1. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  2. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-81.
  3. Edward L. Glaeser & Glenn Ellison, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," American Economic Review, American Economic Association, vol. 89(2), pages 311-316, May.
  4. Carlo Pietrobelli, 1998. "The Socio-Economic Foundations Of Competitiveness: An Econometric Analysis of Italian Industrial Districts," Industry and Innovation, Taylor & Francis Journals, vol. 5(2), pages 139-155.
  5. Giulio Bottazzi & Giovanni Dosi & Giorgio Fagiolo & Angelo Secchi, 2004. "Sectoral and Geographical Specificities in the Spatial Structure of Economic Activities," LEM Papers Series 2004/21, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  6. Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
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