This paper studies whether conformism behavior affects individual outcomes in crime. We present a social network model of peer effects with ex-ante heterogeneous agents and show how conformism and deterrence affect criminal activities. We then bring the model to the data by using a very detailed...

Likelihood functions of spatial autoregressive models with normal but heteroskedastic disturbances have been already derived [Anselin (1988, ch.6)]. But there is no implementation for maximum likelihood estimation of these likelihood functions in general (heteroskedastic disturbances) cases....

This paper tests the external spillover effects of the transportation on China’s economic growth from the theoretical and the empirical perspectives. Based on a logarithm production model, this study first proves the existence of the positive externality in the transportation. After that, the...

Lee (2003) proposed for spatial autoregressive (SAR) model the best spatial two-stage least squares estimator (BS2SLSE) as an improvement on Kelejian and Prucha (1998)¡¯s S2SLSE. In this paper, we show that one more step iteration based on BS2SLSE gives a spatial counterpart of the three-stage...