An Empirical Model of Intrametropolitan Population and Employment Growth

In this paper, an empirical model of intrametropolitan population and employment growth is developed and estimated. The empirical model is derived from equilibrium relationships that describe intrametropolitan population mid employment levels. The equilibrium relationships are related to the dynamic process of population and employment growth through the use of a lagged adjustment model. The empirical implementation of the model uses data on 365 municipalities in northern New Jersey. The use of observations that the geographically proximate necessitates that the spatial structure of the model he handled explicitly. A simultaneous system with spatial autocorrelation in the dependent variables is estimated. The results generally agree well with theory.