Simulating confidence for the Ellison–Glaeser index
The Ellison and Glaeser (1997) index is an unbiased statistic of industrial localization. Though the expected value of the index is known, ad hoc thresholds are used to interpret the extent of localization. We improve the interpretation of the index by simulating confidence intervals that a practiti...
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Veröffentlicht in: | Journal of urban economics 2014-05, Vol.81, p.85-103 |
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container_title | Journal of urban economics |
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creator | Cassey, Andrew J. Smith, Ben O. |
description | The Ellison and Glaeser (1997) index is an unbiased statistic of industrial localization. Though the expected value of the index is known, ad hoc thresholds are used to interpret the extent of localization. We improve the interpretation of the index by simulating confidence intervals that a practitioner may use for a statistical test. In the data, we find cases whose index value is above the ad hoc threshold that are not statistically significant. We find many cases below the ad hoc threshold that are statistically significant. Our simulation program is freely available and is customizable for specific applications. |
doi_str_mv | 10.1016/j.jue.2014.02.005 |
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Our simulation program is freely available and is customizable for specific applications.</description><subject>Business confidence indexes</subject><subject>Computational methods</subject><subject>Confidence interval</subject><subject>Economic indicators</subject><subject>Economic theory</subject><subject>Ellison–Glaeser</subject><subject>Expected values</subject><subject>Herfindahl</subject><subject>Localization</subject><subject>Simulation</subject><subject>Statistical analysis</subject><subject>Statistics</subject><subject>Studies</subject><subject>Urban areas</subject><subject>Value</subject><issn>0094-1190</issn><issn>1095-9068</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2014</creationdate><recordtype>article</recordtype><recordid>eNp9kLFOwzAQhi0EEqXwAGyRWFgS7hwnccSEKihIlRiA2XKcCzhKk2InCDbegTfkSXBVJgamu-H7f919jJ0iJAiYX7RJO1HCAUUCPAHI9tgMocziEnK5z2YApYgRSzhkR963AIiZzGcse7DrqdOj7Z8jM_SNrak3FDWDi8YXiq67zvqh__78WnaaPLnI9jW9H7ODRneeTn7nnD3dXD8ubuPV_fJucbWKjeB8jDMseJNLkaYFJ1FXqKECI3QtUwkFGZ1TRVQZbYpGotZcgyxAVM12kVSnc3a-69244XUiP6q19Ya6Tvc0TF5hJjAXWZGVAT37g7bD5PpwXaA4z2WKQgQKd5Rxg_eOGrVxdq3dh0JQW5GqVUGk2opUwFUQGTKXuwyFT98sOeWN3VqqrSMzqnqw_6R_AGqNe0k</recordid><startdate>20140501</startdate><enddate>20140501</enddate><creator>Cassey, Andrew J.</creator><creator>Smith, Ben O.</creator><general>Elsevier Inc</general><general>Elsevier BV</general><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20140501</creationdate><title>Simulating confidence for the Ellison–Glaeser index</title><author>Cassey, Andrew J. ; Smith, Ben O.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c422t-5172f6843372e4db1a0b0c4ad83807eca6ebeebcac7f81aa2a08704bf2a088ed3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2014</creationdate><topic>Business confidence indexes</topic><topic>Computational methods</topic><topic>Confidence interval</topic><topic>Economic indicators</topic><topic>Economic theory</topic><topic>Ellison–Glaeser</topic><topic>Expected values</topic><topic>Herfindahl</topic><topic>Localization</topic><topic>Simulation</topic><topic>Statistical analysis</topic><topic>Statistics</topic><topic>Studies</topic><topic>Urban areas</topic><topic>Value</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Cassey, Andrew J.</creatorcontrib><creatorcontrib>Smith, Ben O.</creatorcontrib><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of urban economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Cassey, Andrew J.</au><au>Smith, Ben O.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Simulating confidence for the Ellison–Glaeser index</atitle><jtitle>Journal of urban economics</jtitle><date>2014-05-01</date><risdate>2014</risdate><volume>81</volume><spage>85</spage><epage>103</epage><pages>85-103</pages><issn>0094-1190</issn><eissn>1095-9068</eissn><abstract>The Ellison and Glaeser (1997) index is an unbiased statistic of industrial localization. Though the expected value of the index is known, ad hoc thresholds are used to interpret the extent of localization. We improve the interpretation of the index by simulating confidence intervals that a practitioner may use for a statistical test. In the data, we find cases whose index value is above the ad hoc threshold that are not statistically significant. We find many cases below the ad hoc threshold that are statistically significant. Our simulation program is freely available and is customizable for specific applications.</abstract><cop>New York</cop><pub>Elsevier Inc</pub><doi>10.1016/j.jue.2014.02.005</doi><tpages>19</tpages></addata></record> |
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subjects | Business confidence indexes Computational methods Confidence interval Economic indicators Economic theory Ellison–Glaeser Expected values Herfindahl Localization Simulation Statistical analysis Statistics Studies Urban areas Value |
title | Simulating confidence for the Ellison–Glaeser index |
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