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Counterfactual Spatial Distributions

  • Paul E. Carrillo

    ()

    (Department of Economics/Institute for International Economic Policy, George Washington University)

  • Jonathan Rothbaum

    ()

    (Development Research Group, The World Bank)

The influential contributions of DiNardo, Fortin, and Lemieux (1996), Firpo, Fortin, and Lemieux (2009), Machado and Mata (2005), and Donald, Green, and Paarsch (2000) provide researchers with a useful toolbox to estimate counterfactual distributions of scalar random variables. These techniques have been widely applied in the literature. Typically, the dependent variable of interest has been a scalar and little consideration has been given to spatial factors. In this paper we propose a simple method to construct the counterfactual distribution of the location of a variable across space. We apply the spatial counterfactual technique to assess 1) how much changes in individual characteristics of Hispanics in the Washington, DC, area account for changes in the distribution of their residential location choices, and 2) how changes in the average characteristics of shareholders account for changes in the spatial distribution of new firms in Quito, Ecuador.

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File URL: http://www.gwu.edu/~iiep/assets/docs/papers/Carrillo_IIEPWP_2014-5.pdf
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Paper provided by The George Washington University, Institute for International Economic Policy in its series Working Papers with number 2014-05.

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Length: 36 pages
Date of creation: Mar 2014
Date of revision:
Handle: RePEc:gwi:wpaper:2014-05
Contact details of provider: Web page: http://www.gwu.edu/~iiep/
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  1. Nidardo, J. & Fortin, N. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Papers 93-94-15, California Irvine - School of Social Sciences.
  2. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
  3. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 377-393, May.
  4. Nicodemo, Catia & Raya, Josep M., 2012. "Change in the Distribution of House Prices across Spanish Cities," IZA Discussion Papers 6503, Institute for the Study of Labor (IZA).
  5. Donald, Stephen G & Green, David A & Paarsch, Harry J, 2000. "Differences in Wage Distributions between Canada and the United States: An Application of a Flexible Estimator of Distribution Functions in the Presence of Covariates," Review of Economic Studies, Wiley Blackwell, vol. 67(4), pages 609-33, October.
  6. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January.
  7. Patrick J. Bayer & Robert McMillan & Kim Rueben, 2004. "What Drives Racial Segregation? New Evidence Using Census Microdata," Yale School of Management Working Papers ysm409, Yale School of Management.
  8. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 203-219.
  9. Carrillo, Paul E. & Pope, Jaren C., 2012. "Are homes hot or cold potatoes? The distribution of marketing time in the housing market," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 189-197.
  10. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
  11. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
  12. Carrillo, Paul & Yezer, Anthony, 2009. "Alternative measures of homeownership gaps across segregated neighborhoods," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 542-552, September.
  13. Jim Albrecht & Aico van Vuuren & Susan Vroman, 2007. "Counterfactual Distributions with Sample Selection Adjustments: Econometric Theory and an Application to the Netherlands," Working Papers gueconwpa~07-07-06, Georgetown University, Department of Economics.
  14. John Bound & Michael F. Lovenheim & Sarah Turner, 2010. "Why Have College Completion Rates Declined? An Analysis of Changing Student Preparation and Collegiate Resources," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 129-57, July.
  15. Dolls, Mathias & Fuest, Clemens & Peichl, Andreas, 2012. "Automatic stabilizers and economic crisis: US vs. Europe," Journal of Public Economics, Elsevier, vol. 96(3), pages 279-294.
  16. Binh Nguyen & James Albrecht & Susan Vroman & Daniel Westbrook, 2003. "A Quantile Regression Decomposition of Urban-Rural Inequality in Vietnam," Working Papers gueconwpa~03-03-31, Georgetown University, Department of Economics.
  17. Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June.
  18. O'Donnell, Owen & Nicolás, Ángel López & Van Doorslaer, Eddy, 2009. "Growing richer and taller: Explaining change in the distribution of child nutritional status during Vietnam's economic boom," Journal of Development Economics, Elsevier, vol. 88(1), pages 45-58, January.
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