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Luminosity and Local Economic Growth

Author

Listed:
  • John Gibson

    (University of Waikato)

  • Bonggeun Kim

    (Seoul National University)

  • Chao Li

    (University of Auckland)

Abstract

We examine relationships between luminosity and local economic growth for counties in China and the US and districts in Indonesia. Many authors estimate treatment effects on local luminosity growth and transfer GDP-luminosity elasticities from elsewhere to calculate economic growth effects. Our insight is that these GDP-luminosity elasticities vary especially by spatial scale and metro status, and also by period and remote sensing source. The elasticities mainly capture extensive margins of luminosity. Measurement errors in popular DMSP data attenuate GDP-luminosity elasticities but aggregation-sensitivity persists even when using instrumental variables estimation. Consequently, claimed growth effects of various treatments may be quite inaccurate.

Suggested Citation

  • John Gibson & Bonggeun Kim & Chao Li, 2024. "Luminosity and Local Economic Growth," Working Papers in Economics 24/08, University of Waikato.
    • Handle: RePEc:wai:econwp:24/08
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    File URL: https://repec.its.waikato.ac.nz/wai/econwp/2408.pdf
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    More about this item

    Keywords

    GDP growth; Luminosity; measurement error; treatment effects;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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