Geographic Concentration of Economic Activity: An aggregate index
AbstractThis paper first proposes a measure, the mutual information index derived from the information theory, to quantify overall concentration from an axiomatic perspective. The analysis reveals that this overall concentration measure can be written as the weighed sum of the Theil index for each sector of the economy (partial concentration). Next, the generalized entropy family of concentration indexes is characterized in terms of basic axioms borrowed from the literature on income distribution and occupational segregation. Finally, these measures are used to analyze the spatial patterns of manufacturing industries in Spain along the last three decades, paying special attention to their technological intensity.
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Bibliographic InfoPaper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 0901.
Length: 37 pages
Date of creation: Mar 2009
Date of revision:
Geographic concentration; Inequality measures; Segregation measures;
Find related papers by JEL classification:
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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