Incorporating labour market structure in regional econometric models

Dennis Glennon, Julia Lane, Stanley Johnson, Edward Robb

Research output: Contribution to journalArticle

Abstract

Regional forecasting models typically involve sets of explanatory variables that are highly collinear. As a result, the specifications and the forecasts themselves are highly sensitive to minor changes in specification and additions or deletions to the sample observations. This present paper illustrates how persistent effects derived from regional production relations can be incorporated in estimating regional forecasting models. Inclusion of these effects is shown to reduce problems of multicollinearity and to improve the structural representation and the forecasting performance of regional econometric models.

Original languageEnglish (US)
Pages (from-to)545-555
Number of pages11
JournalApplied Economics
Volume18
Issue number5
DOIs
StatePublished - 1986

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Labour market
Econometric models
Market structure
Inclusion
Multicollinearity
Forecasting performance

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Incorporating labour market structure in regional econometric models. / Glennon, Dennis; Lane, Julia; Johnson, Stanley; Robb, Edward.

In: Applied Economics, Vol. 18, No. 5, 1986, p. 545-555.

Research output: Contribution to journalArticle

Glennon, Dennis ; Lane, Julia ; Johnson, Stanley ; Robb, Edward. / Incorporating labour market structure in regional econometric models. In: Applied Economics. 1986 ; Vol. 18, No. 5. pp. 545-555.
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