IDEAS home Printed from https://ideas.repec.org/a/kap/jproda/v50y2018i3d10.1007_s11123-018-0540-z.html
   My bibliography  Save this article

Heterogeneous spillovers among Spanish provinces: a generalized spatial stochastic frontier model

Author

Listed:
  • Alberto Gude

    (Oviedo Efficiency Group, Universidad de Oviedo)

  • Inmaculada Álvarez

    (Oviedo Efficiency Group and Universidad Autónoma de Madrid)

  • Luis Orea

    () (Oviedo Efficiency Group, Universidad de Oviedo)

Abstract

Abstract This paper introduces new spatial stochastic frontier models to examine Spanish provinces’ efficiency and its evolution over the period 2000–2013. We use a heteroscedastic version of the spatial stochastic frontier models introduced by Glass et al. (J Econ 190(2):289–300, 2016) that, in addition, allows us to identify the determinants of the spatial dependence among provinces. We contribute to the heterogeneous spatial models that have been introduced in recent years, such as Aquaro et al. (Working Paper No. 15-17. USC Dornsife Institute for New Economic Thinking, 2015) and Malikov and Sun (J Econ 199(1):13–34, 2017), allowing measures of spatial dependence specific to each observation. This feature of the model lets us rank all Spanish provinces in accordance with their degree of spatial dependence, information that will aid policymakers to better allocate public resources between provinces. The period examined is of special interest given that it coincides with a break in the economic growth tendency, which leads to a deterioration in Spain´s economic situation.

Suggested Citation

  • Alberto Gude & Inmaculada Álvarez & Luis Orea, 2018. "Heterogeneous spillovers among Spanish provinces: a generalized spatial stochastic frontier model," Journal of Productivity Analysis, Springer, vol. 50(3), pages 155-173, December.
  • Handle: RePEc:kap:jproda:v:50:y:2018:i:3:d:10.1007_s11123-018-0540-z
    DOI: 10.1007/s11123-018-0540-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11123-018-0540-z
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Alexandra Schmidt & Ajax Moreira & Steven Helfand & Thais Fonseca, 2009. "Spatial stochastic frontier models: accounting for unobserved local determinants of inefficiency," Journal of Productivity Analysis, Springer, vol. 31(2), pages 101-112, April.
    3. Jan Mutl & Michael Pfaffermayr, 2011. "The Hausman test in a Cliff and Ord panel model," Econometrics Journal, Royal Economic Society, vol. 14, pages 48-76, February.
    4. Benos, Nikos & Karagiannis, Stelios, 2016. "Do education quality and spillovers matter? Evidence on human capital and productivity in Greece," Economic Modelling, Elsevier, vol. 54(C), pages 563-573.
    5. repec:eee:regeco:v:72:y:2018:i:c:p:58-73 is not listed on IDEAS
    6. Su, Liangjun, 2012. "Semiparametric GMM estimation of spatial autoregressive models," Journal of Econometrics, Elsevier, vol. 167(2), pages 543-560.
    7. repec:eee:regeco:v:64:y:2017:i:c:p:148-161 is not listed on IDEAS
    8. Jeffrey P. Cohen & Catherine J. Morrison Paul, 2004. "Public Infrastructure Investment, Interstate Spatial Spillovers, and Manufacturing Costs," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 551-560, May.
    9. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," Review of Economic Studies, Oxford University Press, vol. 58(1), pages 43-61.
    10. Álvarez, Inmaculada C. & Barbero, Javier & Zofío, José L., 2016. "A spatial autoregressive panel model to analyze road network spillovers on production," Transportation Research Part A: Policy and Practice, Elsevier, vol. 93(C), pages 83-92.
    11. LeSage, James P. & Chih, Yao-Yu, 2016. "Interpreting heterogeneous coefficient spatial autoregressive panel models," Economics Letters, Elsevier, vol. 142(C), pages 1-5.
    12. Hung-jen Wang & Peter Schmidt, 2002. "One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels," Journal of Productivity Analysis, Springer, vol. 18(2), pages 129-144, September.
    13. Thierry Mayer, 2008. "Market Potential and Development," Sciences Po publications 6798, Sciences Po.
    14. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    15. Alfredo M. Pereira & Jorge M. Andraz, 2013. "On The Economic Effects Of Public Infrastructure Investment: A Survey Of The International Evidence," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(4), pages 1-37, December.
    16. Raul Ramos & Jordi Suriñach & Manuel Artís, 2010. "Human capital spillovers, productivity and regional convergence in Spain," Papers in Regional Science, Wiley Blackwell, vol. 89(2), pages 435-447, June.
    17. repec:taf:specan:v:14:y:2019:i:2:p:196-218 is not listed on IDEAS
    18. repec:eee:econom:v:199:y:2017:i:1:p:12-34 is not listed on IDEAS
    19. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-374, October.
    20. M Tiefelsdorf & D A Griffith & B Boots, 1999. "A variance-stabilizing coding scheme for spatial link matrices," Environment and Planning A, Pion Ltd, London, vol. 31(1), pages 165-180, January.
    21. Glass, Anthony J. & Kenjegalieva, Karligash & Sickles, Robin C., 2016. "A spatial autoregressive stochastic frontier model for panel data with asymmetric efficiency spillovers," Journal of Econometrics, Elsevier, vol. 190(2), pages 289-300.
    22. Javier Barbero & José L. Zofío, 2016. "The Multiregional Core-periphery Model: The Role of the Spatial Topology," Networks and Spatial Economics, Springer, vol. 16(2), pages 469-496, June.
    23. Kenneth J. Arrow, 1962. "The Economic Implications of Learning by Doing," Review of Economic Studies, Oxford University Press, vol. 29(3), pages 155-173.
    24. Corinne Autant-Bernard & James P. LeSage, 2019. "A heterogeneous coefficient approach to the knowledge production function," Spatial Economic Analysis, Taylor & Francis Journals, vol. 14(2), pages 196-218, April.
    25. Inmaculada C. Álvarez-Ayuso & Ana M. Condeço-Melhorado & Javier Gutiérrez & Jose L. Zofío, 2016. "Integrating Network Analysis with the Production Function Approach to Study the Spillover Effects of Transport Infrastructure," Regional Studies, Taylor & Francis Journals, vol. 50(6), pages 996-1015, June.
    26. repec:eee:econom:v:203:y:2018:i:2:p:359-378 is not listed on IDEAS
    27. Subal Kumbhakar & Kai Sun, 2012. "Estimation of TFP growth: a semiparametric smooth coefficient approach," Empirical Economics, Springer, vol. 43(1), pages 1-24, August.
    28. Michele Aquaro & Natalia Bailey & M. Hashem Pesaran, 2015. "Quasi Maximum Likelihood Estimation of Spatial Models with Heterogeneous Coefficients," Working Papers 749, Queen Mary University of London, School of Economics and Finance.
    29. Elhorst, J. Paul, 2003. "Unconditional maximum likelihood estimation of dynamic models for spatial panels," Research Report 03C27, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    30. Case, Anne C. & Rosen, Harvey S. & Hines, James Jr., 1993. "Budget spillovers and fiscal policy interdependence : Evidence from the states," Journal of Public Economics, Elsevier, vol. 52(3), pages 285-307, October.
    31. Glass, Anthony & Kenjegalieva, Karligash & Paez-Farrell, Juan, 2013. "Productivity growth decomposition using a spatial autoregressive frontier model," Economics Letters, Elsevier, vol. 119(3), pages 291-295.
    32. Antonio Alvarez & Christine Amsler & Luis Orea & Peter Schmidt, 2006. "Interpreting and Testing the Scaling Property in Models where Inefficiency Depends on Firm Characteristics," Journal of Productivity Analysis, Springer, vol. 25(3), pages 201-212, June.
    33. Miguel A. Márquez & Julián Ramajo & Geoffrey JD. Hewings, 2015. "Regional growth and spatial spillovers: Evidence from an SpVAR for the Spanish regions," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 1-18, November.
    34. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
    35. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    36. repec:spo:wpecon:info:hdl:2441/10146 is not listed on IDEAS
    37. Oleg Badunenko & Diego Romero-Ávila, 2014. "Productivity Growth across Spanish Regions and Industries: A Production-Frontier Approach," Regional Studies, Taylor & Francis Journals, vol. 48(7), pages 1242-1262, July.
    38. repec:eee:ecolet:v:162:y:2018:i:c:p:62-68 is not listed on IDEAS
    39. Lee, Lung-fei & Yu, Jihai, 2010. "Estimation of spatial autoregressive panel data models with fixed effects," Journal of Econometrics, Elsevier, vol. 154(2), pages 165-185, February.
    40. Glass, Anthony & Kenjegalieva, Karligash & Sickles, Robin C., 2014. "Estimating efficiency spillovers with state level evidence for manufacturing in the US," Economics Letters, Elsevier, vol. 123(2), pages 154-159.
    41. Boyan Jovanovic & Rafael Rob, 1989. "The Growth and Diffusion of Knowledge," Review of Economic Studies, Oxford University Press, vol. 56(4), pages 569-582.
    42. Joaquin Maudos & Jose Pastor & Lorenzo Serrano, 2000. "Efficiency and Productive Specialization: An Application to the Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 34(9), pages 829-842.
    43. repec:bla:presci:v:76:y:1997:i:1:p:115-131 is not listed on IDEAS
    44. Qi Li & Jeffrey Scott Racine, 2006. "Density Estimation, from Nonparametric Econometrics: Theory and Practice," Introductory Chapters,in: Nonparametric Econometrics: Theory and Practice Princeton University Press.
    45. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    46. Nicolas Debarsy, 2012. "The Mundlak Approach in the Spatial Durbin Panel Data Model," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(1), pages 109-131, March.
    47. repec:dgr:rugsom:03c27 is not listed on IDEAS
    48. Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May.
    49. Malikov, Emir & Sun, Yiguo, 2017. "Semiparametric estimation and testing of smooth coefficient spatial autoregressive models," Journal of Econometrics, Elsevier, vol. 199(1), pages 12-34.
    50. Sun, Yiguo & Malikov, Emir, 2018. "Estimation and inference in functional-coefficient spatial autoregressive panel data models with fixed effects," Journal of Econometrics, Elsevier, vol. 203(2), pages 359-378.
    51. Henri L.F. Groot & Jacques Poot & Martijn J. Smit, 2016. "Which Agglomeration Externalities Matter Most And Why?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 756-782, September.
    52. Ron Boschma & Asier Minondo & Mikel Navarro, 2012. "Related variety and regional growth in Spain," Papers in Regional Science, Wiley Blackwell, vol. 91(2), pages 241-256, June.
    53. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    54. Orea, Luis & Llorca, Manuel & Filippini, Massimo, 2015. "A new approach to measuring the rebound effect associated to energy efficiency improvements: An application to the US residential energy demand," Energy Economics, Elsevier, vol. 49(C), pages 599-609.
    55. Sun, Yiguo, 2016. "Functional-coefficient spatial autoregressive models with nonparametric spatial weights," Journal of Econometrics, Elsevier, vol. 195(1), pages 134-153.
    56. Subodh Kumar & R. Robert Russell, 2002. "Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence," American Economic Review, American Economic Association, vol. 92(3), pages 527-548, June.
    57. Arbués, Pelayo & Baños, José F. & Mayor, Matías, 2015. "The spatial productivity of transportation infrastructure," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 166-177.
    58. Zhengyu Zhang, 2013. "A Pairwise Difference Estimator for Partially Linear Spatial Autoregressive Models," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(2), pages 176-194, June.
    59. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, number 8355.
    60. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    61. Kapoor, Mudit & Kelejian, Harry H. & Prucha, Ingmar R., 2007. "Panel data models with spatially correlated error components," Journal of Econometrics, Elsevier, vol. 140(1), pages 97-130, September.
    62. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 225-238.
    63. Camilla Mastromarco & Laura Serlenga & Yongcheol Shin, 2016. "Modelling Technical Efficiency in Cross Sectionally Dependent Stochastic Frontier Panels," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(1), pages 281-297, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Federico Belotti & Giuseppe Ilardi & Andrea Piano Mortari, 2019. "Estimation of Stochastic Frontier Panel Data Models with Spatial Inefficiency," CEIS Research Paper 459, Tor Vergata University, CEIS, revised 30 May 2019.
    2. repec:eee:ejores:v:273:y:2019:i:3:p:1165-1179 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jproda:v:50:y:2018:i:3:d:10.1007_s11123-018-0540-z. 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: (Sonal Shukla) or (Mallaigh Nolan). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.