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A Spatial Econometric Star Model With An Application To U.S. County Economic Growth, 1969-2003

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  • Valerien O. Pede

    ()
    (Raymond J.G.M. Florax
    Matthew T. Holt
    Department of Agricultural Economics, Purdue University, West Lafayette, IN)

Abstract

Spatial regression models incorporating non-stationarity in the regression coefficients are popular. We propose a spatial variant of the Smooth Transition AutoRegressive (STAR) model that is more parsimonious than commonly used approaches and endogenously determines the extent of spatial parameter variation. Uncomplicated estimation and inference procedures are demonstrated using a neoclassical convergence model for United States counties.

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File URL: http://ageconsearch.umn.edu/bitstream/48117/2/09-03.pdf
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Bibliographic Info

Paper provided by Purdue University, College of Agriculture, Department of Agricultural Economics in its series Working Papers with number 09-03.

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Length: 23 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:pae:wpaper:09-03

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Postal: 1145 Krannert Building, West Lafayette, IN 47907-1145
Phone: 765 494-4191
Fax: 765 494-9176
Web page: http://www.agecon.purdue.edu/
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Related research

Keywords: spatial autoregression; smooth transition; spatial econometrics; STAR; GWR;

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  1. Seong-Hoon Cho & Dayton Lambert & Zhuo Chen, 2010. "Geographically weighted regression bandwidth selection and spatial autocorrelation: an empirical example using Chinese agriculture data," Applied Economics Letters, Taylor & Francis Journals, vol. 17(8), pages 767-772.
  2. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute.
  3. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
  4. Roberto BASILE & Bernard GRESS, 2005. "Semi-Parametric Spatial Auto-Covariance Models Of Regional Growth In Europe," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 21, pages 93-118.
  5. Roberto Basile, 2008. "Regional economic growth in Europe: A semiparametric spatial dependence approach," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 527-544, November.
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Cited by:
  1. Brown, Jason & Lambert, Dayton, 2014. "Location decisions of natural gas extraction establishments: a smooth transition count model approach," Research Working Paper RWP 14-5, Federal Reserve Bank of Kansas City.

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