Estimation of spatial models with endogenous weighting matrices, and an application to a demand model for cigarettes

Weighting matrices are typically assumed to be exogenous. However, in many cases this exogeneity assumption may not be reasonable. In these cases, typical model specifications and corresponding estimation procedures will no longer be valid. In this paper we specify a reasonably general spatial panel data model which contains a spatially lagged dependent variable in terms of an endogenous weighting matrix.

MoreLess

Year of publication:	2014
Authors:	Kelejian, Harry H. ; Piras, Gianfranco
Published in:	Regional Science and Urban Economics. - Elsevier, ISSN 0166-0462. - Vol. 46.2014, C, p. 140-149
Publisher:	Elsevier
Subject:	Spatial panel data model \| Endogenous spatial weighting matrix \| Spatial HAC estimator

More details

Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010785300