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One-directional adjacency matrices in spatial autoregressive model: A land price example and Monte Carlo results

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  • Yokoi, Takahisa
  • Ando, Asao
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    Abstract

    In the context of spatial econometrics, we discuss the specification of one-directional effects, not mutual dependencies. Using an empirical study (a spatial autoregressive model of land price data in Fukui Prefecture, Japan) and Monte Carlo simulation results (contiguity matrices built based on regular lattices using the rook criteria), we show that spatial dependencies might not be recognized if such dependencies are assumed to be reciprocal.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0264999311002033
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    Bibliographic Info

    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 29 (2012)
    Issue (Month): 1 ()
    Pages: 79-85

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    Handle: RePEc:eee:ecmode:v:29:y:2012:i:1:p:79-85

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    Web page: http://www.elsevier.com/locate/inca/30411

    Related research

    Keywords: Land price; Spatial autocorrelation; Spatial adjacency matrix; One-directional relationship;

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    1. Rincke, Johannes, 2006. "Competition in the public school sector: Evidence on strategic interaction among US school districts," Journal of Urban Economics, Elsevier, vol. 59(3), pages 352-369, May.
    2. Asao Ando & Ryuichi Uchida, 2004. "The space-time structure of land prices in Japanese metropolitan areas," The Annals of Regional Science, Springer, vol. 38(4), pages 655-674, December.
    3. James P. LeSage & R. Kelley Pace, 2008. "Spatial Econometric Modeling Of Origin-Destination Flows," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 941-967.
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