Testing for localization: A new approach

Murata, Yasusada : Ryo Nakajima : Ryuichi Tamura
WP#16-11 一橋大学イノベーション研究センター （2016/08/19）

Recent empirical studies document that knowledge spillovers attenuate and industry localization decays with distance. It is thus imperative to detect localization accurately especially at short distances. We propose a new approach to testing for localization that corrects the first-order bias at and near the boundary in existing method…