Publication
Nov 2010
This paper solves one of the puzzles in the analysis of regional and industrial distributions of economic activity, that is, the discrepancy between absolute and relative measures. It shows that the difference between an absolute and a relative Theil index of localization can be expressed in terms of absolute and relative concentration and specialization measures. This helps understand and explore why absolute and relative measures frequently evolve in opposite directions. The paper shows for the EU-15 and for UK manufacturing that this divergence originates mainly from the industrial dimension and is largely a statistical artifact inherited from the characteristics of industry classifications.
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English (PDF, 15 pages, 328 KB) |
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Author | Frank Bickenbach, Eckhardt Bode, Christiane Krieger-Boden |
Series | Kiel Institute Working Papers |
Issue | 1660 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2010 Kiel Institute for the World Economy |