Dots to Boxes: Do the Size and Shape of Spatial Units Jeopardize Economic Geography Estimations?

Working Paper: CEPR ID: DP6928

Authors: Anthony Briant; Pierre-Philippe Combes; Miren Lafourcade

Abstract: This paper evaluates, in the context of economic geography estimates, the magnitude of the distortions arising from the choice of zoning system, which is also known as the Modifiable Areal Unit Problem (MAUP). We consider three standard economic geography exercises (the analysis of spatial concentration, agglomeration economies, and trade determinants), using various French zoning systems differentiated according to the size and shape of spatial units, which are the two main determinants of the MAUP. While size matters a little, shape does so much less. Both dimensions seem to be of secondary importance compared to specification issues.

Keywords: agglomeration; concentration; gravity; MAUP; wage equation

JEL Codes: C10; C43; O18; R12; R23


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
size (L25)economic geography estimates (R12)
shape (C20)economic geography estimates (R12)
specification issues (L15)economic geography estimates (R12)
zoning systems (R38)employment density (J69)
employment density (J69)labor productivity (J24)

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