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Path Based Shift-Share Analysis -Using Additional Information in Decomposing Regional Economic Changes
In this paper, the authors propose a methodology based on maximum entropy econometrics to incorporate additional information to select the unique shift-share formula that fits the information best. They illustrate the method empirically by investigating the sources of change of employment growth in Spanish regions, 1986-2000.
Link
http://www.ersa.org/ersaconfs/ersa05/papers/465.pdf