Assignment1.Measurement and interpretation of regional concentration and diversification. In this exercise we use the file HW3-14.xlsx. This data set was obtained from the Bureau of Economic Analysis (BEA)”> on the BEA Website and select Regional Definition. Concisely discuss pivotal aspects of these data in terms of employment definition, industrial classification (specifically the SIC, NAICS classification) and disclosure avoidance procedures (max. 150 words).(b)The file HW3-14.xls includes the BEA employment data for 14 NAICS sectors across 51 states for 2002 and 2012.i. Calculate the location quotients for all the sectors and states considered in 2002 and 2012. Explain what these location quotients mean (Give some examples). Explain how they change over time. ii. Calculate the Hirschmann-Herfindahl Index for 2002 and 2012. Draw a Bar Chart for the 2 periods considered (Hint: look at the material). Discuss in details how these indexes change over space and time.iii. Calculate the Relative Diversity Index for states in 2002 and 2012. Discuss results in details.2.This exercise deals with the question whether Zipf’s law applies to a state you will choose (outside Ohio). To get the data set:•go on the census”> select a state.•Then click on browse data sets for a state of YOUR choice (outside Ohio). Note that you will need a state with at least 50 cities. So don’t pick states like New Hampshire or Rhode Island!•Click on ”Want more? Browse data sets for YOUR STATE”.Under Population Estimates select Places in your state listed alphabetically. Download the file in Excel.•Copy and paste the first two columns (Geographic Area and Census data 2010) in a new Excel spreadsheet. Sort both column with respect to the largest cities.•Create a third column labeled Rank describing the rank of cities. The largest city will have the value 1 and the ith cities will be rankedi.•Finally, create the logarithm of the two variables you will analyze: rank and population size. You’re now ready to answer the questions!For the specification of Zipf’s law useln(rank) =a+bln(pop) +e,wherepoprefers to population,rankto the position of a city when ranked in decreasing order of population size,aandbare estimated coefficients, andeis the error terms.(a)Estimate the parameteraandb.(b)Use graphs to support or reject the validity of Zipf’s law for the US rank size distributions in 2010.
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