Dartboard tests for the location quotient

Paulo Guimaraes (), Octávio Figueiredo and Douglas P. Woodward ()

Regional Science and Urban Economics, 2009, vol. 39, issue 3, pages 360-364

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 [Ellison, G., and Glaeser, E., 1997. Geographic concentration in U.S. manufacturing industries: a dartboard approach. Journal of Political Economy 105 (5), 889-927.] 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: Location; quotient; Dartboard; model; Industrial; location; Agglomeration (search for similar items in EconPapers)
Date: 2009
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Working Paper: Dartboard Tests for the Location Quotient (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:eee:regeco:v:39:y:2009:i:3:p:360-364

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