IDEAS home Printed from https://ideas.repec.org/p/mts/wpaper/200809.html
   My bibliography  Save this paper

Inferences for Selected Location Quotients with Applications to Health Outcomes

Author

Listed:
  • Gemechis D. Djira
  • Frank Schaarschmidt
  • Bichaka Fayissa

Abstract

Location quotient (LQ) is an index frequently used in geography and economics to measure the relative concentration of activities. This quotient is calculated in a variety of ways depending on which group to use as a reference. Here, we focus on simultaneous inference for the ratios of the individual proportions to the overall proportion based on binomial data. Apparently, this is a multiple comparison problem and multiplicity adjusted location quotients have not been addressed up to now. In fact, there is a negative correlation between the comparisons. The quotients can be simultaneously tested against unity and simultaneous confidence intervals can be constructed for the LQs based on existing probability inequalities and by directly using the asymptotic joint distribution of the associated z-statistics. The proposed inferences are appropriate for analysis based on sample surveys. A real data set is used to demonstrate the application of multiplicity adjusted LQs. A simulation study is also carried out to assess the performance of the proposed methods in terms of achieving a nominal coverage probability. It is observed that the coverage of the simple Bonferroni adjusted Fieller intervals for LQs is just as good as the coverage of the method which directly takes the correlations into account.

Suggested Citation

  • Gemechis D. Djira & Frank Schaarschmidt & Bichaka Fayissa, 2008. "Inferences for Selected Location Quotients with Applications to Health Outcomes," Working Papers 200809, Middle Tennessee State University, Department of Economics and Finance.
    • Handle: RePEc:mts:wpaper:200809
    as

    Download full text from publisher

    File URL: http://capone.mtsu.edu/berc/working/LQ9-4-08_WP.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Charles Cortese & Judith Leftwich, 1975. "A technique for measuring the effect of economic base on opportunity for blacks," Demography, Springer;Population Association of America (PAA), vol. 12(2), pages 325-329, May.
    2. Philip Mccann & John H. LL. Dewhurst, 1998. "Regional Size, Industrial Location and Input-Output Expenditure Coefficients," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 435-444.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Billings, Stephen B. & Johnson, Erik B., 2012. "The location quotient as an estimator of industrial concentration," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 642-647.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zheng LU & Xiang DENG, 2017. "Regional Specialization: New Methods Of Measurement And The Trends In China 1987-2007," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 119-134.
    2. Hongli Zhang & Lei Shen & Shuai Zhong & Ayman Elshkaki, 2020. "Economic Structure Transformation and Low-Carbon Development in Energy-Rich Cities: The Case of the Contiguous Area of Shanxi and Shaanxi Provinces, and Inner Mongolia Autonomous Region of China," Sustainability, MDPI, vol. 12(5), pages 1-14, March.
    3. Masayoshi Oka, 2023. "Conceptual and Methodological Arguments against the Use of Location Quotient as an Area-Based Measure of Residential Segregation: A Measurement Perspective," Societies, MDPI, vol. 13(12), pages 1-13, December.
    4. Gunnar Lindberg, 2011. "On the appropriate use of (input-output) coefficients to generate non-survey regional input-output tables: Implications for the determination of output multipliers," ERSA conference papers ersa10p800, European Regional Science Association.
    5. Michael L. Lahr & João Pedro Ferreira & Johannes R. Többen, 2020. "Intraregional trade shares for goods‐producing industries: RPC estimates using EU data," Papers in Regional Science, Wiley Blackwell, vol. 99(6), pages 1583-1605, December.
    6. Billings, Stephen B. & Johnson, Erik B., 2012. "The location quotient as an estimator of industrial concentration," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 642-647.
    7. Turner, Karen & Lenzen, Manfred & Wiedmann, Thomas & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 1: A technical note on combining input-output and ecological footprint analysis," Ecological Economics, Elsevier, vol. 62(1), pages 37-44, April.
    8. Rubén Martínez-Alpañez & José Daniel Buendía-Azorín & María del Mar Sánchez-de-la-Vega, 2023. "A New Improvement Proposal to Estimate Regional Input–Output Structure Using the 2D-LQ Approach," Economies, MDPI, vol. 11(1), pages 1-17, January.
    9. Lu, Zheng & Flegg, A.Tony & Deng, Xiang, 2011. "Regional specialization: a measure method and the trends in China," MPRA Paper 33867, University Library of Munich, Germany.
    10. Chisari, Omar Osvaldo & Mastronardi, Leonardo Javier & Romero, Carlos Adrián, 2012. "Building an input-output Model for Buenos Aires City," MPRA Paper 40028, University Library of Munich, Germany.
    11. Yu, Yang & Hubacek, Klaus & Feng, Kuishuang & Guan, Dabo, 2010. "Assessing regional and global water footprints for the UK," Ecological Economics, Elsevier, vol. 69(5), pages 1140-1147, March.
    12. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "Policy Scepticism and the Impact of Northern Irish Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints," SIRE Discussion Papers 2010-78, Scottish Institute for Research in Economics (SIRE).
    13. A. T. Flegg & C. D. Webber, 2000. "Regional Size, Regional Specialization and the FLQ Formula," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 563-569.
    14. Natalie Stoeckl, 2012. "Comparing Multipliers from Survey and Non-Survey Based IO Models," International Regional Science Review, , vol. 35(4), pages 367-388, October.
    15. Romero, Carlos Adrian & Mastronardi, Leonardo Javier & Faye, Magalí Julieta, 2012. "Análisis de coeficientes de localización. El caso de la provincia de Córdoba [Location quotient analysis. The case of Córdoba state]," MPRA Paper 36997, University Library of Munich, Germany.
    16. Cristian Mardones & Darling Silva, 2023. "Evaluation of Non-survey Methods for the Construction of Regional Input–Output Matrices When There is Partial Historical Information," Computational Economics, Springer;Society for Computational Economics, vol. 61(3), pages 1173-1205, March.
    17. Guangwu Chen & Thomas Wiedmann & Michalis Hadjikakou & Hazel Rowley, 2016. "City Carbon Footprint Networks," Energies, MDPI, vol. 9(8), pages 1-16, July.
    18. J. Reid Cummings & Donald R. Epley, 2014. "A Total Requirements View of a Tourism and Hospitality Market is More Accurate Than Traditional Location Quotients," Tourism Economics, , vol. 20(3), pages 473-492, June.
    19. Kowalewski, Julia, 2012. "Regionalization of national input-output tables: Empirical evidence on the use of the FLQ formula," HWWI Research Papers 126, Hamburg Institute of International Economics (HWWI).
    20. Georgios Lampiris & Christos Karelakis & Efstratios Loizou, 2020. "Comparison of non-survey techniques for constructing regional input–output tables," Annals of Operations Research, Springer, vol. 294(1), pages 225-266, November.

    More about this item

    Keywords

    Location quotients; Fieller's theorem; Multiple comparison.;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mts:wpaper:200809. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Benjamin Jansen (email available below). General contact details of provider: https://edirc.repec.org/data/efmtsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.