SPECIFICATION AND ECONOMETRIC IMPROVEMENTS IN REGIONAL PORTFOLIO DIVERSIFICATION ANALYSIS

Authors
HUNT GL SHEESLEY TJ
Citation
Gl. Hunt et Tj. Sheesley, SPECIFICATION AND ECONOMETRIC IMPROVEMENTS IN REGIONAL PORTFOLIO DIVERSIFICATION ANALYSIS, Journal of regional science, 34(2), 1994, pp. 217-235
Citations number
15
Categorie Soggetti
Environmental Studies","Planning & Development
Journal title
Journal of regional science → ACNP
ISSN journal
00224146
Volume
34
Issue
2
Year of publication
1994
Pages
217 - 235
Database
ISI
SICI code
0022-4146(1994)34:2<217:SAEIIR>2.0.ZU;2-L
Abstract
We develop an alternative specification of the regional portfolio dive rsification problem that explicitly incorporates important information on regional economic structure and avoids certain inconsistencies in the traditional specification with respect to what constitutes the cho ice set. We also implement improved econometric procedures for estimat ing the required parameters and provide an empirical example using 198 7 data for the Colorado economy to illustrate the potential difference s in sectoral allocations obtained when applying our alternative appro ach versus the traditional one.