Spatial structure and taxonomy of decomposition in shift-share analysis

The goal of this paper is twofold. The first goal is to incorporate spatial structure within shift-share analysis, to take into account interregional interaction in the decomposition analysis. Secondly, this paper develops a taxonomy of regional growth rate decompositions. A taxonomy of the spatial structure is presented; it comprises twenty alternative decomposition structures, including the original standard shift-share analysis as well as six alternative structures outlined in the taxonomy for non-spatial structures.