This paper studies how the strength of social ties are affected by the geographical location of other individuals and their social capital. We characterize the equilibrium in terms of both social interactions and social capital. We show that lower travel costs increase not only the interaction...

I propose Robust Rao’s Score (RS) test statistic to determine endogeneity of spatial weights matrices in a spatial dynamic panel data (SDPD) model (Qu, Lee, and Yu, 2017). I firstly introduce the bias-corrected score function since the score function is not centered around zero due to the...

The main purpose of this study is to explore the determinants of average household consumption spending in counties and cities from the two aspects of government fiscal expenditure and household characteristics. A spatial econometric model, the spatial Durbin model, was used to analyze...

Due to economic interconnectedness across regions, locally confined violent conflict may have welfare effects far beyond directly affected areas. This paper focuses on Somalia’s al-Shabaab insurgency and investigates whether the food transportation network propagates the effects of violent...

Selecting correct specification in spatial model frameworks is a relevant research topic in spatial econometrics. The purpose of this paper is to compare two well-known model selection strategies, Specific-to-General, Stge, and General-to-Specific, Gets, in the context of spatial probit models....