Abstract
We begin with a theoretical discussion on the spatiotemporal dynamics induced by spatial VECMs (SpVECM). Subsequently, a hierarchy of empirical error correction models for house prices and housing construction in Israel is reported based on the empirical results for spatial panel cointegration reported in Chap. 8. Empirical illustrations for single equation error correction are presented and discussed. This is followed by empirical illustration of error correction involving two equations (house prices and housing construction) in which error correction occurs within and between equations, as in a SpVECM.
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References
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Beenstock, M., Felsenstein, D. (2019). Spatial Vector Error Correction. In: The Econometric Analysis of Non-Stationary Spatial Panel Data. Advances in Spatial Science. Springer, Cham. https://doi.org/10.1007/978-3-030-03614-0_9
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DOI: https://doi.org/10.1007/978-3-030-03614-0_9
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Online ISBN: 978-3-030-03614-0
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