Concentration of economic activity: Inequality-based measures
AbstractThis paper reflects about the invariance property that regional economics is implicitly assuming when “relative” inequality measures, such as the Gini index, are used to quantify the geographic concentration of economic activity. In addition, it proposes a new concentration measure that is based on an “absolute” inequality index. The properties of this variance-type index are analyzed. An “absolute” employment Lorenz curve is also proposed to measure concentration, the dominance criterion of which is consistent with this new index. Finally, the usefulness of the new measures is illustrated by using manufacturing employment data in Spain.
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Bibliographic InfoPaper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 1006.
Length: 34 pages
Date of creation: Nov 2010
Date of revision:
Inequality measures; Geographic concentration; Axioms;
Other versions of this item:
- Olga Alonso-Villar & Coral Del R�o, 2012. "Concentration of Economic Activity: Inequality-Based Measures," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(2), pages 223-246, June.
- 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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