Structural Interactions in Spatial Panels

Arnab Bhattacharjee; Sean Holly

Structural Interactions in Spatial Panels

Arnab Bhattacharjee
, Sean Holly

Research output: Working paper/Preprint › 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 distinction 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 assumption. Limitations and potential enhancements of the existing methods are discussed, and several directions for new research are highlighted.

Original language	English
Place of Publication	St. Andrews
Publisher	Scottish Institute for Research in Economics
Number of pages	43
Publication status	Published - 2009

Publication series

Name	SIRE Discussion Papers
Publisher	Scottish Institute for Research in Economics
No.	2009-39

Keywords

cross sectional and spatial dependence
spatial weights matrix
interactions and diffusion
Monetary Policy Committee
Generalised method of moments

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SIRE DP 2009 39Final published version, 1.02 MB

Structural interactions in spatial panels
Bhattacharjee, A. & Holly, S., 1 Feb 2011, In: Empirical Economics. 40, 1, p. 69-94 26 p.
Research output: Contribution to journal › Article › peer-review
23 Link opens in a new tab Citations (Scopus)
Structural Interactions in Spatial Panels
Bhattacharjee, A. & Holly, S., 2010, St. Andrews: Centre for Dynamic Macroeconomic Analysis, 42 p. (CDMA Working Paper Series; no. CDMA10/03).
Research output: Working paper/Preprint › Working paper

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Structural Interactions in Spatial Panels

Abstract

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Keywords

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Structural interactions in spatial panels

Structural Interactions in Spatial Panels

Cite this