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Estimation of Spatial Weights Matrix in a Spatial Error Model, with an Application to Diffusion in Housing Demand

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  • Arnab Bhattacharjee
  • Chris Jensen-Butler

Abstract

This paper proposes a methodology for estimation of spatial weights matrices which are consistent with a given or estimated pattern of spatial autocovariance. This approach is potentially useful for applications in urban, environmental, development, growth and other areas of economics where there is uncertainty regarding the nature or spatial (or cross-sectional) interaction between regions (or economic agents). The proposed methodology is applied to housing markets in England and Wales and several new hypotheses are advanced about the social and economic forces that determine spatial diffusion in housing demand.

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Bibliographic Info

Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 0519.

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Date of creation: Dec 2005
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Handle: RePEc:san:crieff:0519

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Related research

Keywords: Spatial econometrics; Spatial autocorrelation; Spatial weights matrix; Spatial error model; Housing demand;

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References

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  1. Arnab Bhattacharjee & Chris Jensen-Butler, 2005. "A Model of Regional Housing Markets in England and Wales," CRIEFF Discussion Papers, Centre for Research into Industry, Enterprise, Finance and the Firm 0508, Centre for Research into Industry, Enterprise, Finance and the Firm.
  2. repec:cup:etheor:v:12:y:1996:i:3:p:569-80 is not listed on IDEAS
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Citations

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Cited by:
  1. Bhattacharjee, Arnab & Holly, Sean, 2009. "Understanding Interactions in Social Networks and Committees," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2009-53, Scottish Institute for Research in Economics (SIRE).
  2. Bhattacharjee, Arnab & Holly, Sean, 2009. "Structural Interactions in Spatial Panels," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2009-39, Scottish Institute for Research in Economics (SIRE).
  3. Bhattacharjee, A. & Holly, S., 2010. "Understanding Interactions in Social Networks and Committees," Cambridge Working Papers in Economics, Faculty of Economics, University of Cambridge 1003, Faculty of Economics, University of Cambridge.
  4. Arnab Bhattacharjee & Eduardo Castro & Jo�o Marques, 2012. "Spatial Interactions in Hedonic Pricing Models: The Urban Housing Market of Aveiro, Portugal," Spatial Economic Analysis, Taylor & Francis Journals, Taylor & Francis Journals, vol. 7(1), pages 133-167, March.
  5. Arnab Bhattacharjee & Sean Holly, 2010. "Structural Interactions in Spatial Panels," CDMA Working Paper Series, Centre for Dynamic Macroeconomic Analysis 201003, Centre for Dynamic Macroeconomic Analysis.
  6. Bhattacharjee, Arnab & de Castro, Eduardo Anselmo & Marques, João Lourenço, 2011. "Spatial Interactions in Hedonic Pricing Models: The Urban Housing Market of Aveiro, Portugal," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2011-45, Scottish Institute for Research in Economics (SIRE).
  7. Seya, Hajime & Yamagata, Yoshiki & Tsutsumi, Morito, 2013. "Automatic selection of a spatial weight matrix in spatial econometrics: Application to a spatial hedonic approach," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 43(3), pages 429-444.
  8. Arnab Bhattacharjee & Sean Holly, 2006. "Taking Personalities out of Monetary Policy Decision Making? Interactions, Heterogeneity and Committee Decisions in the Bank of England’s MPC," CDMA Working Paper Series, Centre for Dynamic Macroeconomic Analysis 200612, Centre for Dynamic Macroeconomic Analysis.
  9. Richard Harris & Victoria Kravtsova, 2009. "In Search of W," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0017, Spatial Economics Research Centre, LSE.
  10. Joao Lourenço Marques & Eduardo Castro & Arnab Bhattacharjee & Paulo Batista, 2012. "SPATIAL HETEROGENEITY ACROSS SUBMARKETS: Housing submarket in an urban area of Portugal," ERSA conference papers ersa12p1111, European Regional Science Association.

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