Sectoral diversification as insurance against economic instability
运用投资组合理论和随机前沿分析，研究德国地区部门多样化能否作为抵御区域经济增长率波动的保险机制，发现多样化确实能带来更有效的增长-不稳定组合，且空间互动影响该效应。
Abstract This paper examines the extent to which sectoral diversification can act as an insurance mechanism against fluctuations in regional gross value‐added growth rates. Portfolio theory is applied to the growth‐instability properties of German districts. Furthermore, a comprehensive diversification measure is defined. Stochastic Frontier Analysis is deployed in order to estimate whether diversification allows regions to achieve more efficient growth‐instability combinations. The results confirm that diversification does generate such effects. Spatial interactions do also play a role: The effects are less pronounced for regions whose economic performance is mainly driven by the surrounding regions.