Generalized Moments Estimation for Spatial Panel Data: Indonesian Rice Farming
AbstractWe consider estimation of a panel data model where disturbances are spatially correlated in the cross-sectional dimension, based on geographic or economic proximity. When the time dimension of the data is large, spatial correlation parameters may be consistently estimated. When the time dimension is small (the usual panel data case), we develop an estimator that extends the cross-sectional model of Kelejian and Prucha. This approach is applied in a stochastic frontier framework to a panel of Indonesian rice farms where spatial correlations represent productivity shock spillovers, based on geographic proximity and weather. These spillovers affect farm-level efficiency estimation and ranking. Copyright 2004, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 86 (2004)
Issue (Month): 1 ()
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Other versions of this item:
- Viliam Druska & William C. Horrace, 2002. "Generalized Moments Estimation for Spatial Panel Data: Indonesian Rice Farming," Econometrics 0206004, EconWPA, revised 11 May 2003.
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
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