REAT (version 1.2.1)

locq: Location quotient

Description

Calculating the location quotient

Usage

locq(e_ij, e_j, e_i, e)

Arguments

e_ij

a single numeric value with the employment of industry $i$ in region $j$

e_j

a single numeric value with the over-all employment in region $j$

e_i

a single numeric value with the over-all employment in industry $i$

e

a single numeric value with the over-all employment in all regions

Value

A single numeric value ($LQ$)

Details

The location quotient is a simple measure for the concentration of an industry ($i$) in a region ($j$) and is also the mathematical basis for other related indicators in regional economics (e.g. gini.conc()). The function returns the value $LQ$ which is equal to 1 if the concentration of the regarded industry is exactly the same as the over-all concentration (that means, it is proportionally represented in region $j$). If the value of $LQ$ is smaller (bigger) than 1, the industry is underrepresented (overrepresented). The function checks the input values for errors (i.e. if employment in a region is bigger than over-all employment).

References

Farhauer, O./Kroell, A. (2013): “Standorttheorien: Regional- und Stadtoekonomik in Theorie und Praxis”. Wiesbaden : Springer.

See Also

gini.conc, gini.spec

Examples

# Example from Farhauer/Kroell (2013):
locq (1714, 79006, 879213, 15593224)
# returns the location quotient (0.3847623)