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Reevaluating Alternative Measures Of Industrial Diversity As Indicators Of Regional Cyclical Variations

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  • Bruce D. Wundt

    (University of Hartford)

Abstract

This paper examines the relationship between industrial diversity and regional cyclical instability in a new setting by focusing on detailed information of one region over time. It compares the ability of various measures of regional diversification to explain historical employment variations in manufacturing employment in the state of Connecticut between 1964 and 1983 at both the 2-digit and 3-digit SIC levels. This study demonstrates that the portfolio variance is an effective yardstick for tracking cyclical instability and provides policymakers with a tool to feasibly approach the problem of instability in regions.

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  • Bruce D. Wundt, 1992. "Reevaluating Alternative Measures Of Industrial Diversity As Indicators Of Regional Cyclical Variations," The Review of Regional Studies, Southern Regional Science Association, vol. 22(1), pages 59-73, Summer.
    • Handle: RePEc:rre:publsh:v22:y:1992:i:1:p:59-73
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    References listed on IDEAS

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    1. Merlin M. Hackbart & Donald A. Anderson, 1975. "On Measuring Economic Diversification," Land Economics, University of Wisconsin Press, vol. 51(4), pages 374-378.
    2. John R. Kort, 1981. "Regional Economic Instability and Industrial Diversification in the U.S," Land Economics, University of Wisconsin Press, vol. 57(4), pages 596-608.
    3. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    4. Cho, Dong W. & Schuermann, Allen C., 1980. "A decision model for regional industrial recruitment and development," Regional Science and Urban Economics, Elsevier, vol. 10(2), pages 259-273, June.
    5. Glenn E. McLaughlin, 1930. "Industrial Diversification in American Cities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 45(1), pages 131-149.
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    Cited by:

    1. Edward Nissan & George Carter, 2009. "Specialization of state sectoral employment," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 33(2), pages 148-160, April.
    2. Nissan, Edward & Carter, George, 2010. "States' Nonagricultural Employment at the 3-Digit North American Industry Classification System (NAICS) Level," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(1), pages 1-13.
    3. Paul B. Siegel & Jeffrey Alwang & Thomas G. Johnson, 1994. "Toward An Improved Portfolio Variance Measure Of Regional Economic Stability," The Review of Regional Studies, Southern Regional Science Association, vol. 24(1), pages 71-86, Summer.
    4. Wenli Yan & Douglas A. Carr, 2013. "Federal Environmental Regulation Impacts on Local Economic Growth and Stability," Economic Development Quarterly, , vol. 27(3), pages 179-192, August.
    5. Sarah A. Low & Stephan Weiler, 2012. "Employment Risk, Returns, and Entrepreneurship," Economic Development Quarterly, , vol. 26(3), pages 238-251, August.
    6. J. C. Dissart, 2003. "Regional Economic Diversity and Regional Economic Stability: Research Results and Agenda," International Regional Science Review, , vol. 26(4), pages 423-446, October.
    7. repec:bla:jregsc:v:44:y:2004:i:3:p:517-542:1 is not listed on IDEAS
    8. Barth, James R. & Benefield, Justin D. & Hollans, Harris, 2015. "Industry Concentration and Regional Housing Market Performance," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(2).
    9. Harris, Thomas R. & Seung, Chang K. & Narayanan, Rangesan, 2001. "Targeting Economic Diversification: An Application of Target MOTAD Procedures," The Review of Regional Studies, Southern Regional Science Association, vol. 31(2), pages 197-215, Fall.
    10. Kuhlmann, Angela & Decker, Christopher S. & Wohar, Mark E., 2008. "The Composition of Industry and the Duration of State Recessions," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(3), pages 1-16.
    11. George Petrakos & Yannis Psycharis, 2016. "The spatial aspects of economic crisis in Greece," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 137-152.
    12. Jollès, Maya & Meyermans, Eric & Vašíček, Bořek, 2023. "Determinants of macroeconomic resilience in the euro area: An empirical assessment of national policy levers," Economic Systems, Elsevier, vol. 47(3).

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