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Forecasting change using an interregional homogeneity index

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Abstract

This study of employment change in the Allentown-Bethlehem-Easton, SMSA applies an index of interregional homogeneity to determine the extent to which the industrial structure of the region over a nine-year period has been modifiedvis-a-vis that of the rest of the nation. Indices derived from the analysis are synthesized with a modified employment shift model to forecast expected employment for twenty-two industries in the ABE, SMSA for the year 1975. It is demonstrated that an interregional homogeneity index when combined with a shift and share model can be adapted to systematically forecast regional change. The concept employed is to first stratify the allocation of change to a sub-region in total and then to each industry.

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This study was made possible in part by a research grant from Waynesburg College.

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Cowan, R.S. Forecasting change using an interregional homogeneity index. Ann Reg Sci 7, 67–80 (1973). https://doi.org/10.1007/BF01283484

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