The empirical investigation
In the preceding chapter, we have developed and described the model intended for use in the empirical analysis. In this chapter we will discuss the data employed to estimate the model, related data and estimation problems, and finally the empirical results.
KeywordsLocalization Economy Scale Economy Urbanization Economy Agglomeration Economy Leather Industry
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- 1.Data for the years 1957, 1959–1962, 1964–1966 and 1969–1971 are taken from Annual Census of Manufactures: Area Studies, various reports. Data for the years 1958, 1963, 1967, and 1972 are taken from the Census of Manufactures: Area Studies, various reports.Google Scholar
- 2.The Bureau of Labor Statistics provides wholesale price indices for the two-digit SIC classifications. These indices were employed to convert both payroll and wages into real terms.Google Scholar
- 3.Two sources were utilized. The Census of Manufactures: Area Studies, various reports, provides data on the number of establishments for the years 1958, 1963, 1967, and 1972. For the interim years data are taken from County Business Patterns, various reports.Google Scholar
- 4.Ideally we would like to conduct this test for all of the SMSA comprising this study. However, just to carry out this test for a single SMSA requires an extreme amount of data and time (which was believed could be more productively spent elsewhere in the study). In addition, it is believed that the overall results for one SMSA could be generalized. As such, the Boton SMSA was chosen since it contained data for most of the industries employed in this study.Google Scholar
- 5.Tables 4.1a-4.1s of Carlino (1976) give complete statistics for all industries.Google Scholar
- 6.In addition, population per square mile of land area for both the SMSA as a whole and its suburban ring were tried. In general, these population density proxies did not work nearly as well as population scale. Data for the population scale variable were obtained from U.S. Bureau of the Census, 1970 Census of Population and Housing, PIIC (2), General Demographic Trends for Metropolitan Areas, 1960 to 1970.Google Scholar
- 7.Alderfer and Michl (1957:342-343).Google Scholar
- 8.Mills (1972: \7).Google Scholar
- 9.Ibid., p. 17.Google Scholar
- 10.Ibid., p. 17.Google Scholar
- 11.Hoover (1937:123).Google Scholar
- 12.Ibid., p. 123.Google Scholar