This paper studies the spatial random effects and spatial fixed effects model. The model includes a Cliff and Ord type spatial lag of the dependent variable as well as a spatially lagged one-way error component structure, accounting for both heterogeneity and spatial correlation across units. We...

The within or least squares dummy variable estimator is severely biased in homogeneous dynamic panel models with moderate T. We present a bias correction for this estimator based on an iterative bootstrap procedure. Monte Carlo simulations show that this procedure is a good alternative for the...