Spatial Panel Data Analysis
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Since the turn of the century, the spatial econometrics literature has shifted its interest from the specification and estimation of econometric relationships based on cross-sectional data to spatial panels. Spatial panels refer to georeferenced point data over time of individuals, households, firms, houses, or public services such as universities and hospitals, or they refer to spatial units such as zip codes, neighborhoods, municipalities, counties, regions, jurisdictions, states, or countries. One well-known example of a spatial panel that has been widely used for illustration purposes in many empirical studies is Baltagi and Li’s (2004) dataset on cigarette demand in 46 American states over the period 1963–1992. In this study the dependent variable, real per capita sales of cigarettes measured in packs per person aged 14 years and older, is regressed on the average retail price of a pack of cigarettes and real per capita disposable income. The data is...
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