Abstract
Shift-share analysis results with either the conventional model or the DEM model are identical at the regional level. At the industrial level, however, the two models are quite different. In the author's original article, he indicated that he believed the DEM model to be superior to the conventional model at the industrial level in its analytical, interpretive, and policy qualities. DEM's homothetic approach as well as its reallocation of the growth and mix effects are more didactic than conventional model results. Neither shift-share model is a growth model nor designed for analyzing demand-pull or foreign competition factors.
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