The Bright Side of MAUP: an Enquiry on the Determinants of Industrial Agglomeration in the United States
Using county employment data for US and two appositely developed zoning algorithms, I compare the industrial concentration of manufacturing sectors calculated following the standard metropolitan and micropolitan statistical areas definition with two other counterfactuals, obtained by �gerrymandering� the original sample of counties. The methodology allows i) to obtain an unbiased estimate of industrial agglomeration which significantly improves on existing indices, and ii) to provide a ranking of industries according to their responsiveness to labour market determinants of agglomeration. Results show that labour market determinants explain one quarter of the variation of spatial agglomeration across industries.
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