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Estimation and analysis of labor productivity in Spanish cities

Author

Listed:
  • Rubiera-Morollón, Fernando

    () (REGIOlab, Universidad de Oviedo)

  • Fernández-Vázquez , Esteban

    (REGIOlab, Universidad de Oviedo)

  • Aponte-Jaramillo, Elizabeth

    (Universidad Autónoma de Occidente)

Abstract

The relationship between city size and territorial productivity hasattracted much attention in the urban economic literature. Some theories on thefield claim for a strong positive correlation between the size of the municipalitiesand their income, mainly motivated by economical reasons, geographical characteristicsor other factor of the urban environment. Unfortunately, in many countries the empirical research on this topic is not possible given the lack of data of incomeat a local level. This paper proposes the use of entropy econometrics to estimateurban income and urban productivity according to city size from aggregate information,which can be defined as an exercise of ecological inference. With the estimateddata a regional classification based on the relevance of the cities size allowsus to measure the relevance of agglomeration economics on the cities productivityin Spain.

Suggested Citation

  • Rubiera-Morollón, Fernando & Fernández-Vázquez , Esteban & Aponte-Jaramillo, Elizabeth, 2012. "Estimation and analysis of labor productivity in Spanish cities," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 22, pages 129-151.
  • Handle: RePEc:ris:invreg:0023
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Ana Viñuela‐Jiménez & Fernando Rubiera‐Morollón & Begoña Cueto, 2010. "An Analysis of Urban Size and Territorial Location Effects on Employment Probabilities: The Spanish Case," Growth and Change, Wiley Blackwell, vol. 41(4), pages 495-519, December.
    3. Martínez Argüelles, S.R. & Rubiera Morollón, F., 2000. "Algunas reflexiones acerca de la productividad de los servicios en la economía española," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 16, pages 133-155, Diciembre.
    4. John M. Quigley, 1998. "Urban Diversity and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 127-138, Spring.
    5. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    6. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    7. Mario Polèse & Éric Champagne, 1999. "Location Matters: Comparing the Distribution of Economic Activity in the Canadian and Mexican Urban Systems," International Regional Science Review, , vol. 22(1), pages 102-132, April.
    8. Judge, George G. & Miller, Douglas J. & Cho, Wendy K. T., 2003. "An Information Theoretic Approach to Ecological Estimation and Inference," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7h03r00q, Department of Agricultural & Resource Economics, UC Berkeley.
    9. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-160, Spring.
    10. Golan, Amos, 2007. "Information and entropy econometrics - volume overview and synthesis," Journal of Econometrics, Elsevier, vol. 138(2), pages 379-387, June.
    11. Judge, George G. & Miller, Douglas James & Cho, Wendy K, 2003. "An information theoretic approach to ecological estimation and inference," CUDARE Working Paper Series 946, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    12. Gavin A. Wood & John B. Parr, 2005. "Transaction Costs, Agglomeration Economies, and Industrial Location," Growth and Change, Wiley Blackwell, vol. 36(1), pages 1-15.
    13. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    More about this item

    Keywords

    productivity; cities; urban economics; ecological inference; entropy econometrics; Spain;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • 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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