Accounting for Neighboring Effects in Measures of Spatial Concentration
AbstractA common problem with spatial economic concentration measures (e.g. Gini, Herfindhal, entropy and Ellison-Glaeser indices) is accounting for the position of regions in space. While they purport to measure spatial clustering, these statistics are confined to calculations within individual areal units. They are insensitive to the proximity of regions - to neighboring effects. Clearly, economic clusters may cross the boundaries of the regions. Yet with current measures, any industrial agglomeration that traverses boundaries will be chopped into two or more pieces. Activity in adjacent spatial units is treated in exactly the same way as activity in far-flung, non-adjacent areas. This paper shows how some popular measures of spatial concentration relying on areal data can be modified to account for neighboring effects and spatial autocorrelation. With a U.S. application, we also show that the new instruments we propose are useful and easy to implement.
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Bibliographic InfoPaper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 353.
Length: 23 pages
Date of creation: Dec 2009
Date of revision:
Measures of Agglomeration; Spatial Concentration;
Other versions of this item:
- Paulo Guimarães & Octávio Figueiredo & Douglas Woodward, 2011. "Accounting For Neighboring Effects In Measures Of Spatial Concentration," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 51(4), pages 678-693, October.
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other
- C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-16 (All new papers)
- NEP-GEO-2010-01-16 (Economic Geography)
- NEP-URE-2010-01-16 (Urban & Real Estate Economics)
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- Elena Lasarte & Miguel Angel Marquez Paniagua, 2014. "Decomposition of Regional Income Inequality and Neighborhood Component: A Spatial Theil Index," Working Papers. Serie EC, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie) 2014-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Eric Marcon & Florence Puech, 2012. "A typology of distance-based measures of spatial concentration," Working Papers, HAL halshs-00679993, HAL.
- Kristian Behrens & Théophile Bougna, 2013. "An Anatomy of the Geographical Concentration of Canadian Manufacturing Industries," Cahiers de recherche, CIRPEE 1327, CIRPEE.
- Register, D. Lane & Lambert, Dayton M. & English, Burton C. & Jensen, Kimberly L. & Menard, R. Jamey & Wilcox, Michael D., 2012. "Geographic Distribution of Renewable Energy Sector Industries: An Analysis Using Recent Developments in Industry Concentration Measurement," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington, Agricultural and Applied Economics Association 124038, Agricultural and Applied Economics Association.
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