Path Based Shift-Share Analysis -Using Additional Information in Decomposing Regional Economic Changes
Esteban FernÃ¡ndez (),
Bart Los and
Carmen Carvajal ()
Authors registered in the RePEc Author Service: Esteban Fernández Vázquez ()
ERSA conference papers from European Regional Science Association
Shift-Share analysis is a well-known methodology frequently used to obtain insights into the determinants of regional growth processes. It can address many issues, such as output growth, employment growth and productivity growth. After the initial equation proposed by Dunn (1960), several extensions have been suggested in order to overcome some conceptual problems. One of the most important undesirable properties that have been mentioned is the so-called Â“non-uniquenessÂ” of the results. That is, numerous decomposition forms are equivalent to the classical shift-share equation from a theoretical point of view, but the results often depend strongly on the choice of a specific one. In this paper, we propose a methodology based on maximum entropy econometrics to incorporate additional information to select the unique shift-share formula that fits this information best. We illustrate the method empirically by investigating the sources of change of employment growth in Spanish regions, 1986-2000.
New Economics Papers: this item is included in nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa05p465
Access Statistics for this paper
More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Gunther Maier ().