Spatial and Spatiotemporal Econometrics, Volume 18 (Advances in Econometrics)  

Hardcover: 340 pages
Publisher: JAI Press; 1 edition (December 30, 2004)
Language: English
Review:
Ten papers consider alternative spatial and spatiotemporal econometric models and estimation methods. Journal of Economic Literature, 2005.  Product Description This volume focuses on econometric models that confront estimation and inference issues occurring when sample data exhibit spatial or spatiotemporal dependence. This can arise when decisions or transactions of economic agents are related to the behaviour of nearby agents. Dependence of one observation on neighbouring observations violates the typical assumption of independence made in regression analysis. Contributions to this volume by leading experts in the field of spatial econometrics provide details regarding estimation and inference based on a variety of econometric methods including, maximum likelihood, Bayesian and hierarchical Bayes, instrumental variables, generalized method of moments, maximum entropy, non-parametric and spatiotemporal. An overview of spatial econometric models and methods is provided that places contributions to this volume in the context of existing literature. New methods for estimation and inference are introduced in this volume and Monte Carlo comparisons of existing methods are described. In addition to topics involving estimation and inference, approaches to model comparison and selection are set forth along with new tests for spatial dependence and functional form. These methods are applied to a variety of economic problems including: hedonic real estate pricing, agricultural harvests and disaster payments, voting behaviour, identification of edge cities, and regional labour markets. The volume is supported by a web site containing data sets and software to implement many of the methods described by contributors to this volume.

LIST OF CONTRIBUTORS vii
INTRODUCTION
James P. LeSage and R. Kelley
Pace 1
PART I: MAXIMUM LIKELIHOOD METHODS TESTING FOR LINEAR AND LOG-LINEAR MODELS AGAINST BOX-COX ALTERNATIVES WITH SPATIAL LAG DEPENDENCE Badi H. Baltagi and Dong Li 35SPATIAL LAGS AND SPATIAL ERRORS REVISITED: SOME MONTE CARLO EVIDENCE Robin Dubin 75
PART II: BAYESIAN METHODS<br/>BAYESIAN MODEL CHOICE IN SPATIAL ECONOMETRICS Leslie W. Hepple 101
A BAYESIAN PROBIT MODEL WITH SPATIAL
DEPENDENCIES
Tony E. Smith and James P. LeSage 127
PART III: ALTERNATIVE ESTIMATION METHODS<br/>INSTRUMENTAL VARIABLE ESTIMATION OF A SPATIALAUTOREGRESSIVE MODEL WITH AUTOREGRESSIVE
DISTURBANCES: LARGE AND SMALL SAMPLE RESULTSHarry H. Kelejian, Ingmar R. Prucha and
Yevgeny Yuzefovich 163GENERALIZED MAXIMUM ENTROPY ESTIMATION OF A FIRST ORDER SPATIAL AUTOREGRESSIVE MODEL
Thomas L. Marsh and Ron C. Mittelhammer 199
PART IV: NONPARAMETRIC METHODS
EMPLOYMENT SUBCENTERS AND HOME PRICE
APPRECIATION RATES IN METROPOLITAN CHICAGO
Daniel P. McMillen 237
SEARCHING FOR HOUSING SUBMARKETS USING
MIXTURES OF LINEAR MODELS
M. D. Ugarte, T. Goicoa and A. F. Militino 259
PART V: SPATIOTEMPORAL METHODS
SPATIO-TEMPORAL AUTOREGRESSIVE MODELS FOR U.S.
UNEMPLOYMENT RATE
Xavier de Luna and Marc G. Genton 279
A LEARNING RULE FOR INFERRING LOCAL<br/>DISTRIBUTIONS OVER SPACE AND TIME
Stephen M. Stohs and Jeffrey T. LaFrance 295