Dartboard Tests for the Location Quotient

Paulo Guimaraes, Octávio Figueiredo and Douglas Woodward ()

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: In this paper we reinterpret the location quotient, the commonly employed measure of regional industrial agglomeration, as an estimator derived from Ellison and Glaeser’s (1997) dartboard framework. This approach provides a theoretical foundation on which to build statistical tests for the measure. With a simple application, we show that these tests provide valuable information about the accuracy of the location quotient. The tests are relatively easy to implement using regional employment and establishment data.

Keywords: Dartboard Location Model; Location Quotient; Statistical Tests (search for similar items in EconPapers)
JEL-codes: C12 R10 R12 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2008-04
New Economics Papers: this item is included in nep-ecm, nep-geo and nep-ure
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Related works:
Journal Article: Dartboard tests for the location quotient (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:273

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