Local and Global Agglomeration Patterns: Two Econometrics-Based Indicators

15 Pages Posted: 22 Sep 2011 Last revised: 8 Mar 2012

Date Written: September 21, 2011

Abstract

We propose two model-based measures of the intensity of local and global agglomeration patterns at the industry level. Spatial plant dispersion in a given industry is modeled as the outcome of an error components process that provides a convenient framework for the simultaneous treatment of strictly localized and distance-related agglomeration forces. Having dealt with maximum likelihood inference on model parameters, tackling also the issue of data censoring, the methodology is subsequently implemented on Italian census data for both manufacturing and service industries and a comparison of findings with respect to standard agglomeration and spatial autocorrelation measures is undertaken.

Keywords: Agglomeration, Spatial autocorrelation, Spatial error components model

JEL Classification: R12, L70, C19

Suggested Citation

Di Giacinto, Valter and Pagnini, Marcello, Local and Global Agglomeration Patterns: Two Econometrics-Based Indicators (September 21, 2011). Regional Science and Urban Economics, Vol. 41, No. 3, 2011. Available at SSRN: https://ssrn.com/abstract=1931774

Valter Di Giacinto

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Marcello Pagnini (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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