CHAPTER 7 - A METHODOLOGY FOR MEASURING THE EXTERNALITY EFFECTS OF IT AND NON-IT LOCATIONAL PATTERNS

This chapter describes the methodology used to evaluate the role of IT and non-IT employment localization in explaining regional productivity differences. The first section presents the models used in this analysis, and the second section defines and describes the variables.

7.1Three Models to Evaluate the Externality Effects of the Spatial Distribution of IT Employment

Three models will be used to evaluate the externality effects of IT and non-IT concentration (model 1), localization (model 2), and density (model 3). This section describes these models.