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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
Handle: RePEc:gwi:wpaper:2014-05
Contact details of provider: Web page: http://www.gwu.edu/~iiep/
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  11. 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.
  12. John Bound & Michael Lovenheim & Sarah Turner, 2009. "Why Have College Completion Rates Declined? An Analysis of Changing Student Preparation and Collegiate Resources," NBER Working Papers 15566, National Bureau of Economic Research, Inc.
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  16. 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.
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