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Spillover effects in spatial models: Generalizations and extensions

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  • Harry Kelejian
  • Gianfranco Piras

Abstract

In this paper, we consider two different cases of spillover effects: the first is a case where the model does not contain any additional endogenous regressors. Related to this, we give a variance formula that can be used to make inference for estimated spillover effects. In the second case, we extend the discussion of spillover effects to a model containing additional endogenous variables. We suggest approximations to the spillover effects that according to the results of our Monte Carlo experiment are quite accurate. However, our variance formula can not be determined unless the equations of the entire system are known. Suggestions for approximations in this case are left for future research.

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  • Harry Kelejian & Gianfranco Piras, 2020. "Spillover effects in spatial models: Generalizations and extensions," Journal of Regional Science, Wiley Blackwell, vol. 60(3), pages 425-442, June.
    • Handle: RePEc:bla:jregsc:v:60:y:2020:i:3:p:425-442
    DOI: 10.1111/jors.12476
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    9. Harry H. Kelejian & Gianfranco Piras, 2018. "Important overlooked IVs in spatial models," Empirical Economics, Springer, vol. 55(1), pages 69-83, August.
    10. Kelejian, Harry H. & Prucha, Ingmar R., 2007. "HAC estimation in a spatial framework," Journal of Econometrics, Elsevier, vol. 140(1), pages 131-154, September.
    11. Jeffrey P. Cohen & Catherine J. Morrison Paul, 2004. "Public Infrastructure Investment, Interstate Spatial Spillovers, and Manufacturing Costs," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 551-560, May.
    12. Harry Kelejian & George Tavlas & George Hondroyiannis, 2006. "A Spatial Modelling Approach to Contagion Among Emerging Economies," Open Economies Review, Springer, vol. 17(4), pages 423-441, December.
    13. George Hondroyiannis & Harry Kelejian & George Tavlas, 2009. "Spatial Aspects of Contagion among Emerging Economies," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(2), pages 191-211.
    14. Won Kim, Chong & Phipps, Tim T. & Anselin, Luc, 2003. "Measuring the benefits of air quality improvement: a spatial hedonic approach," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 24-39, January.
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    16. Jeanty, P. Wilner & Partridge, Mark & Irwin, Elena, 2010. "Estimation of a spatial simultaneous equation model of population migration and housing price dynamics," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 343-352, September.
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    2. Jesús Peiró-Palomino & William Orlando Prieto-Bustos & Emili Tortosa-Ausina, 2023. "Regional income convergence in Colombia: population, space, and long-run dynamics," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 559-601, April.
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