Structural Interactions in Spatial Panels

Arnab Bhattacharjee, Sean Holly

    Research output: Working paper

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    Abstract

    Until recently, much effort has been devoted to the estimation of panel data regression models without adequate attention being paid to the drivers of diffusion and interaction across cross section and spatial units. We discuss some new methodologies in this emerging area and demonstrate their use in measurement and inferences on cross section and spatial interactions. Specifically, we highlight the important dis?tinction between spatial dependence driven by unobserved common factors and those based on a spatial weights matrix. We argue that, purely factor driven models of spatial dependence may be somewhat inadequate because of their connection with the exchangeability as?sumption. Limitations and potential enhancements of the existing methods are discussed, and several directions for new research are highlighted.
    Original languageEnglish
    Place of PublicationSt. Andrews
    PublisherCentre for Dynamic Macroeconomic Analysis
    Number of pages42
    Publication statusPublished - 2010

    Publication series

    NameCDMA Working Paper Series
    PublisherSchool of Economics and Finance, University of St. Andrews
    No.CDMA10/03

    Fingerprint

    cross section
    panel data
    matrix
    methodology
    method

    Keywords

    • cross Sectional and Spatial Difference
    • spatial weights matrix
    • interactions and diffusion
    • Monetary Policy Committee
    • Generalised method of moments

    Cite this

    Bhattacharjee, A., & Holly, S. (2010). Structural Interactions in Spatial Panels. (CDMA Working Paper Series; No. CDMA10/03). St. Andrews: Centre for Dynamic Macroeconomic Analysis.
    Bhattacharjee, Arnab ; Holly, Sean. / Structural Interactions in Spatial Panels. St. Andrews : Centre for Dynamic Macroeconomic Analysis, 2010. (CDMA Working Paper Series; CDMA10/03).
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    Bhattacharjee, A & Holly, S 2010 'Structural Interactions in Spatial Panels' CDMA Working Paper Series, no. CDMA10/03, Centre for Dynamic Macroeconomic Analysis, St. Andrews.

    Structural Interactions in Spatial Panels. / Bhattacharjee, Arnab; Holly, Sean.

    St. Andrews : Centre for Dynamic Macroeconomic Analysis, 2010. (CDMA Working Paper Series; No. CDMA10/03).

    Research output: Working paper

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    AU - Holly, Sean

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    KW - spatial weights matrix

    KW - interactions and diffusion

    KW - Monetary Policy Committee

    KW - Generalised method of moments

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    Bhattacharjee A, Holly S. Structural Interactions in Spatial Panels. St. Andrews: Centre for Dynamic Macroeconomic Analysis. 2010. (CDMA Working Paper Series; CDMA10/03).