A REVIEW AND COMPARISON OF SHIFT-SHARE IDENTITIES

Shift-share analysis is a means of decomposing change. Several alterna tive shift-share formulations appear in the literature, This research compares seven shift-share models through intra-model component correl ations. The widely cited Esteban-Marquillas model performs less well u nder this test than do the classic model and two of its other derivati ves. The Esteban-Marquillas model has other previously undetected weak nesses: 1) some components should logically sum to zero when all secto rs and regions are added together, but do not; and 2) some components produce unrealistically high values for small volatile sectors.