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A state†space approach for measuring regional manufacturing production indices**A previous version of this article was presented at the 38th European Congress of the European Regional Science Association (ERSA) held in Vienna 28 August – 1 September 1998. We extend appreciation to our discussant R. Florax and to three anonymous referees for their helpful comments. Financial support is gratefully acknowledged from the DGICYT SEC99†0700 project and the Plan Nacional de I+D 2FD97†1004†C03†01 project

Author

Listed:
  • Clar, Miquel
  • Ramos, Raúl
  • Suriñach, Jordi

Abstract

In this research note we propose a latent variable model in the spirit of Israilevich and Kuttner (1993) to measure regional manufacturing production. In order to test the validity of the proposed methodology, we apply it for those Spanish regions that have a direct quantitative index. The results demonstrate the accuracy of the methodology proposed and show that it can overcome some of the difficulties of the indirect method applied by the INE, the Spanish National Institute of Statistics.

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Handle: RePEc:eee:paresc:v:80:y:2001:i:3:p:357-369
DOI: 10.1111/j.1435-5597.2001.tb01804.x
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Keywords

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JEL classification:

  • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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