" Are Prices Unimportant? The Changing Structure of the Industrialized Economies,"
Eileen Appelbaum & Ronald Schettkat, 1999. Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer Gesellschaft für Regionalforschung (GfR), vol. " Diversified specialisation-going one step beyond regional economics’ specialisation-diversification concept," Oliver Farhauer & Alexandra Kröll, 2012. The Review of Economics and Statistics, MIT Press, vol. " The Restricted Least Squares Estimator: A Pedagogical Note," Greene, William H & Seaks, Terry G, 1991. Temi di discussione (Economic working papers)Ĥ74, Bank of Italy, Economic Research and International Relations Area. " Identifying the Sources of Local Productivity Growth," Federico Cingano & Fabiano Schivardi, 2003. In the paper the sources of different regional employment development in Bavaria are presented, analysed by Shift-Share Regression. Therefore, an empirical analysis of employment effects should focus on the industries of an economy. It can be assumed that in different industries of an economy different demand elasticities are dominating. Then, it is profitable for a firm to increase the size of its labour force. In this case price decreases following higher productivity lead to an extension of product demand which (over-)com¬pensates the direct labour saving effect. If, however, demand is elastic a compensating effect dominates. Then it is profitable for a firm to reduce its labour force. If demand is inelastic the direct labour saving effect of technological progress is dominating and the effect is negative. According to a specific theorem, the employment effect of technological progress depends on the elasticity of product demand. The most important one refers to theoretical analyses of structural change. The analysis is motivated by theoretical considerations of different sources. The regional units used are districts of Western Germany ('Landkreise' and 'kreisfreie Städte'), especially in the present context the districts of the federal State of Bavaria. 
We extend this basic structure further: In our case, the effects of sectoral structures, establishment size, qualification structures and locational determinants on employment growth are studied. In Patterson's analysis the industrial sector structure was used as the sole determining factor alongside the location effects and the national trend. In contrary to the deterministic Shift-Share-Analysis employment development was examined in a linear model.
In a basic version it was introduced by Patterson (1991) as a method for analysing and testing regional industrial developments. Shift-Share Regression is able to overcome all these critical points. A major problem is the nature of the method as a deterministic procedure which excludes significance tests. The detection of causal effects is at least problematic and the inclusion of additional explanatory variables is possible only in special cases. Classical deterministic Shift-Share-Analysis has often been criticised, since it does not permit a model-based analysis. The method used is not a deterministic decomposition such as the classical Shift-Share-Analysis, but a powerful, yet simple and flexible econometric tool to test theory-related hypotheses, which can be applied as a 'work-horse' in studies of many kinds. This paper presents an outline of the so-called Shift-Share Regression and an application of this method to the analysis of employment development.
0 kommentar(er)
