Arbeitspapier

Estimating Equilibrium Models of Sorting across Locations

With the growing recognition of the role played by geography in all sorts of economic problems, there is strong interest in measuring the size and scope of local spillovers (i.e., simple anonymous agglomeration or congestion effects, or more complicated interactions between individuals or firms of specific types). It is well-understood, however, that such spillovers cannot be distinguished from unobservable local attributes using just the observed location decisions of individuals or firms. We propose an empirical strategy for recovering estimates of spillovers in the presence of unobserved local attributes for a broadly applicable class of equilibrium sorting models. This approach relies on an instrumental variables strategy derived from the internal logic of the sorting model itself. We show practically how the strategy is implemented, provide intuition for our instrumental variables, and discuss the role of effective choice-set variation in identifying the model, and carry-out a series of Monte Carlo experiments to demonstrate the instruments' performance in small samples.

Sprache
Englisch

Erschienen in
Series: Center Discussion Paper ; No. 862

Klassifikation
Wirtschaft
Thema
Local Spillovers
Location Choice
Economic Geography
Natural Advantage
Social Interactions
Network Effects
Endogenous Sorting
Discrete Choice Models
Agglomeration
Congestion
Spillover-Effekt
Betriebliche Standortwahl
Netzwerkökonomik
Agglomerationseffekt
Bottleneck
Theorie
Neue ökonomische Geographie
Soziale Beziehungen
Diskrete Entscheidung
Gleichgewicht

Ereignis
Geistige Schöpfung
(wer)
Bayer, Patrick
Timmins, Christopher
Ereignis
Veröffentlichung
(wer)
Yale University, Economic Growth Center
(wo)
New Haven, CT
(wann)
2003

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Bayer, Patrick
  • Timmins, Christopher
  • Yale University, Economic Growth Center

Entstanden

  • 2003

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