Spatial Panel Models

Reference work entry

Abstract

This chapter provides a survey of the existing literature on spatial panel data models. Both static and dynamic models will be considered. The chapter also demonstrates that spatial econometric models that include lags of the dependent variable and of the independent variables in both space and time provide a useful tool to quantify the magnitude of direct and indirect effects, both in the short term and long term. Direct effects can be used to test the hypothesis as to whether a particular variable has a significant effect on the dependent variable in its own economy and indirect effects to test the hypothesis whether spatial spillovers exist. To illustrate these models and their effects estimates, a demand model for cigarettes is estimated based on panel data from 46 US states over the period 1963–1992.

Keywords

Spatial Unit Geographically Weight Regression Spatial Weight Matrix Spatial Error Model Spatial Durbin Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Department of Economics, Econometrics and FinanceUniversity of GroningenGroningenThe Netherlands

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