Estimation of a growth allocation model for North-west England

A version of the Empiric growth allocation model, which forecasts changes in the proportional shares of the distribution of population and two broad categories of employment, has been developed for North-west England using published sources of information. In spite of estimation problems raised by multicollinearity, and evidence of misspecification for the particular simplified form of the model tested, the results of the study generally support the underlying hypotheses of the model and indicate that it may prove a valuable means of forecasting.