A0663
Title: Adjusting for neighboring effects in measuring industry coagglomeration
Authors: Diego Giuliani - University of Trento (Italy) [presenting]
Maria Michela Dickson - University of Trento (Italy)
Giuseppe Espa - University of Trento (Italy)
Flavio Santi - University of Trento (Italy)
Abstract: Measuring the coagglomeration between industries properly is essential to empirically validate economic theories of industry agglomeration. Traditional measures of coagglomeration between industries based on regional data do not consider the information about the spatial positions of regions. This implies their insensitivity to regions' spatial order and inability to account for neighbouring effects, which can lead to biased assessments of the actual degree of industry coagglomeration. As an attempt to cope with this limitation, a new index is introduced that quantifies the degree of coagglomeration between two industries while adjusting for spatial connections among regions.
