The location quotient as an estimator of industrial concentration
We construct the location quotient (LQ) from a discrete data generating process and formally test its statistical properties. First, we show that the LQ is typically unbiased, but exhibits finite sample bias when assuming a Poisson distribution. Second, we determine the accuracy of statistical tests, which depends of both sample size as well as desired confidence levels. After constructing LQs using County Business Patterns (2000) data, we find improved accuracy in statistical tests when one increases spatial as well as industrial aggregation. Results show a clear tradeoff between precise statistical inference and power in detecting industrial concentration.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomas J. Holmes & John J. Stevens, 2002. "Geographic Concentration and Establishment Scale," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 682-690, November.
- Joseph P. Romano & Michael Wolf, 2003.
"Stepwise multiple testing as formalized data snooping,"
Economics Working Papers
712, Department of Economics and Business, Universitat Pompeu Fabra.
- Joseph P. Romano & Michael Wolf, 2005. "Stepwise Multiple Testing as Formalized Data Snooping," Econometrica, Econometric Society, vol. 73(4), pages 1237-1282, 07.
- Joseph P. Romano & Michael Wolf, 2003. "Stepwise Multiple Testing as Formalized Data Snooping," Working Papers 17, Barcelona Graduate School of Economics.
- Briant, A. & Combes, P.-P. & Lafourcade, M., 2010.
"Dots to boxes: Do the size and shape of spatial units jeopardize economic geography estimations?,"
Journal of Urban Economics,
Elsevier, vol. 67(3), pages 287-302, May.
- Briant, Anthony & Combes, Pierre-Philippe & Lafourcade, Miren, 2008. "Dots to Boxes: Do the Size and Shape of Spatial Units Jeopardize Economic Geography Estimations?," CEPR Discussion Papers 6928, C.E.P.R. Discussion Papers.
- Paulo Guimarães & Octávio Figueiredo & Douglas Woodward, 2008.
"Dartboard Tests for the Location Quotient,"
FEP Working Papers
273, Universidade do Porto, Faculdade de Economia do Porto.
- Gemechis D. Djira & Frank Schaarschmidt & Bichaka Fayissa, 2008. "Inferences for Selected Location Quotients with Applications to Health Outcomes," Working Papers 200809, Middle Tennessee State University, Department of Economics and Finance.
- George Deltas, 2003. "The Small-Sample Bias of the Gini Coefficient: Results and Implications for Empirical Research," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 226-234, February.
- Gilles Duranton & Henry G. Overman, 2005.
"Testing for Localization Using Micro-Geographic Data,"
Review of Economic Studies,
Oxford University Press, vol. 72(4), pages 1077-1106.
- Duranton, Gilles & Henry G Overman, 2003. "Testing for Localisation Using Micro-Geographic Data," Royal Economic Society Annual Conference 2003 69, Royal Economic Society.
- Duranton, Gilles & Overman, Henry G, 2002. "Testing for Localization Using Micro-Geographic Data," CEPR Discussion Papers 3379, C.E.P.R. Discussion Papers.
- Gilles Duranton & Henry Overman, 2002. "Testing for Localisation Using Micro-Geographic Data," CEP Discussion Papers dp0540, Centre for Economic Performance, LSE.
- Gilles Duranton & Henry G. Overman, 2002. "Testing for localisation using micro-geographic data," LSE Research Online Documents on Economics 20071, London School of Economics and Political Science, LSE Library.
- Gilles Duranton & Henry G. Overman, 2005. "Testing for localization using micro-geographic data," LSE Research Online Documents on Economics 581, London School of Economics and Political Science, LSE Library.
- Dan O'Donoghue & Bill Gleave, 2004. "A Note on Methods for Measuring Industrial Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 419-427.
- Paulo Guimaraes & Octavio Figueiredo & Douglas Woodward, 2000.
"A tractable approach to the firm location decision problem,"
NIMA Working Papers
2, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
- Paulo Guimar�es & Octávio Figueirdo & Douglas Woodward, 2003. "A Tractable Approach to the Firm Location Decision Problem," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 201-204, February.
- Kurt Schmidheiny & Marius Brülhart, 2009.
"On the Equivalence of Location Choice Models: Conditional Logit, Nested Logit and Poisson,"
CESifo Working Paper Series
2726, CESifo Group Munich.
- Schmidheiny, Kurt & Brülhart, Marius, 2011. "On the equivalence of location choice models: Conditional logit, nested logit and Poisson," Journal of Urban Economics, Elsevier, vol. 69(2), pages 214-222, March.
- Kurt Schmidheiny & Marius Brülhart, 2009. "On the equivalence of location choice models: conditional logit, nested logit and poisson," Working Papers 2009/14, Institut d'Economia de Barcelona (IEB).
- Brülhart, Marius & Schmidheiny, Kurt, 2009. "On the Equivalence of Location Choice Models: Conditional Logit, Nested Logit and Poisson," CEPR Discussion Papers 7379, C.E.P.R. Discussion Papers.
- JH Ll DEWHURST, .
"Regional Size, Industrial Location And Input-Output Expenditure Coefficients,"
Dundee Discussion Papers in Economics
074, Economic Studies, University of Dundee.
- Philip Mccann & John H. LL. Dewhurst, 1998. "Regional Size, Industrial Location and Input-Output Expenditure Coefficients," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 435-444.
When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:42:y:2012:i:4:p:642-647. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.