Second-order polynomial spatial error model. Global and local spatial dependence in unemployment in Andalusia
This paper analyses a second-order polynomial spatial structure in the residues of a regression model. We propose a new specification that captures spatial dependence on two different levels, adding a new autoregressive cycle to the errors of the classical spatial error model (SEM). The inference problems of the parameters are solved by means of maximum likelihood estimation. The model is confirmed to identify two spatial structures of spatial dependence, global and local, by an empirical application in the analysis of municipal unemployment in the Spanish region of Andalusia. Finally, Monte Carlo is implemented to evaluate the performance of this strategy in a context of finite size samples.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eleonora Patacchini & Yves Zenou, 2007. "Spatial dependence in local unemployment rates," Journal of Economic Geography, Oxford University Press, vol. 7(2), pages 169-191, March.
- LeSage, James P. & Pace, Robert Kelley, 2011. "Pitfalls in Higher Order Model Extensions of Basic Spatial Regression Methodology," The Review of Regional Studies, Southern Regional Science Association, vol. 41(1), pages 13-26, Summer.
- A S Brandsma & R H Ketellapper, 1979. "A Biparametric Approach to Spatial Autocorrelation," Environment and Planning A, SAGE Publishing, vol. 11(1), pages 51-58, January.
- Luisa Corrado & Bernard Fingleton, 2012.
"Where Is The Economics In Spatial Econometrics?,"
Journal of Regional Science,
Wiley Blackwell, vol. 52(2), pages 210-239, 05.
- Corrado, L. & Fingleton, B., 2011. "Where is the economics in spatial econometrics?," SIRE Discussion Papers 2011-02, Scottish Institute for Research in Economics (SIRE).
- Luisa Corrado & Bernard Fingleton, 2011. "Where is the Economics in Spatial Econometrics?," SERC Discussion Papers 0071, Spatial Economics Research Centre, LSE.
- Luisa Corrado & Bernard Fingleton, 2011. "Where is the economics in spatial econometrics?," LSE Research Online Documents on Economics 33581, London School of Economics and Political Science, LSE Library.
- Luisa Corrado & Bernard Fingleton, 2011. "Where is the Economics in Spatial Econometrics?," Working Papers 1101, University of Strathclyde Business School, Department of Economics.
- Lee, Lung-fei & Liu, Xiaodong, 2010. "Efficient Gmm Estimation Of High Order Spatial Autoregressive Models With Autoregressive Disturbances," Econometric Theory, Cambridge University Press, vol. 26(01), pages 187-230, February.
- 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.
- Joachim MÃ¶ller & RÃ¼diger Soltwedel, 2007. "Recent Developments of Regional Labor Market Analysis Using Spatial Econometrics: Introduction," International Regional Science Review, SAGE Publishing, vol. 30(2), pages 95-99, April.
- Brücker, Herbert & Fachin, Stefano & Venturini, Alessandra, 2011. "Do foreigners replace native immigrants? A panel cointegration analysis of internal migration in Italy," Economic Modelling, Elsevier, vol. 28(3), pages 1078-1089, May.
- Elhorst, J. Paul, 2001.
"The mystery of regional unemployment differentials : a survey of theoretical and empirical explanations,"
00C06, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Elhorst, J. Paul, 2000. "The Mystery Of Regional Unemployment Differentialsa Survey Of Theoretical And Empirical Explanations," ERSA conference papers ersa00p60, European Regional Science Association.
- Bordignon, Massimo & Cerniglia, Floriana & Revelli, Federico, 2003. "In search of yardstick competition: a spatial analysis of Italian municipality property tax setting," Journal of Urban Economics, Elsevier, vol. 54(2), pages 199-217, September.
- Florax, R. & Folmer, H., 1991.
"Specification and Estimation of Spatial Linear Regression Models: Monte Carlo Evaluation of Pre-Test Estimator,"
Mansholt Working Papers
1991-4, Wageningen University, Mansholt Graduate School of Social Sciences.
- Florax, Raymond & Folmer, Henk, 1992. "Specification and estimation of spatial linear regression models : Monte Carlo evaluation of pre-test estimators," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 405-432, September.
- Kathleen P. Bell & Nancy E. Bockstael, 2000. "Applying the Generalized-Moments Estimation Approach to Spatial Problems Involving Microlevel Data," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 72-82, February.
- Giuseppe Arbia, 2011. "A Lustrum of SEA: Recent Research Trends Following the Creation of the Spatial Econometrics Association (2007--2011)," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 377-395, July.
- J. Paul Elhorst & Sandy Fréret, 2009. "Evidence Of Political Yardstick Competition In France Using A Two-Regime Spatial Durbin Model With Fixed Effects," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 931-951.
- Olga Alonso-Villar & Coral del Río & Luis Toharia, 2009. "Un análisis espacial del desempleo por municipios," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 17(1), pages 47-80, Spring.
- Prodromídis, Pródromos-Ioánnis K., 2012. "Modeling male and female employment policy in Greece from local data," Economic Modelling, Elsevier, vol. 29(3), pages 823-839.
- Blommestein, Hans J. & Koper, Nick A. M., 1998. "The influence of sample size on the degree of redundancy in spatial lag operators," Journal of Econometrics, Elsevier, vol. 82(2), pages 317-333, February.
- Enrique López-Bazo & Tomás del Barrio & Manuel Artis, 2002.
"The regional distribution of Spanish unemployment: A spatial analysis,"
Papers in Regional Science,
Springer;Regional Science Association International, vol. 81(3), pages 365-389.
- Lopez-Bazo, Enrique & Del Barrio, Tomas & Artis, Manuel, 2002. "The regional distribution of spanish unemployment. A spatial analysis," ERSA conference papers ersa02p020, European Regional Science Association.
- Enrique Lopez-Bazo & Tomas Del Barrio & Manuel Artis, 2005. "Geographical distribution of unemployment in Spain," Regional Studies, Taylor & Francis Journals, vol. 39(3), pages 305-318.
- L W Hepple, 1995. "Bayesian techniques in spatial and network econometrics: 2. Computational methods and algorithms," Environment and Planning A, Pion Ltd, London, vol. 27(4), pages 615-644, April.
- Patricia Suárez & Matías Mayor & Begoña Cueto, 2012. "The accessibility to employment offices in the Spanish labour market," Papers in Regional Science, Wiley Blackwell, vol. 91(4), pages 823-848, November.
- Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-94, September.
- Jesús Mur & Fernando López & Ana Angulo, 2010. "Instability in spatial error models: an application to the hypothesis of convergence in the European case," Journal of Geographical Systems, Springer, vol. 12(3), pages 259-280, September.
- Sandy Dall’erba & Marco Percoco & Gianfranco Piras, 2009. "Service industry and cumulative growth in the regions of Europe," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(4), pages 333-349, July.
- Harald Badinger & Peter Egger, 2011. "Estimation of higher‐order spatial autoregressive cross‐section models with heteroscedastic disturbances," Papers in Regional Science, Wiley Blackwell, vol. 90(1), pages 213-235, 03.
- Elhorst, J. Paul & Lacombe, Donald J. & Piras, Gianfranco, 2012. "On model specification and parameter space definitions in higher order spatial econometric models," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 211-220.
- DANIEL P. McMILLEN & LARRY D. SINGELL & GLEN R. WADDELL, 2007. "Spatial Competition And The Price Of College," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 817-833, October.
- Maarten Allers & J. Elhorst, 2005. "Tax Mimicking and Yardstick Competition Among Local Governments in the Netherlands," International Tax and Public Finance, Springer, vol. 12(4), pages 493-513, August.
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:33:y:2013:i:c:p:270-279. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.