Geographic Concentration of Economic Activity: An aggregate index

Olga Alonso-Villar and Coral del Rio Otero

No 901, Working Papers from Universidade de Vigo, Departamento de Economía Aplicada

Abstract: This paper first proposes a measure, the mutual information index derived from the information theory, to quantify overall concentration from an axiomatic perspective. The analysis reveals that this overall concentration measure can be written as the weighed sum of the Theil index for each sector of the economy (partial concentration). Next, the generalized entropy family of concentration indexes is characterized in terms of basic axioms borrowed from the literature on income distribution and occupational segregation. Finally, these measures are used to analyze the spatial patterns of manufacturing industries in Spain along the last three decades, paying special attention to their technological intensity.

Keywords: Geographic concentration; Inequality measures; Segregation measures (search for similar items in EconPapers)
JEL-codes: D63 R12 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2009-03
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:vig:wpaper:0901

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