The traditional approach to estimate spatial models bases on a preconceived spatial weights matrix to measure spatial interaction among locations. The a priori assumptions used to define this matrix are supposed to be in line with the "true" spatial relationships among the locations of the...

Regional information about gross domestic product or gross added value is usually available with annual frequency. However, higher-frequency data at regional level is not so frequently available. This type of information is essential in order to (i) monitor the economic situation and (ii)...