IDEAS home Printed from https://ideas.repec.org/a/pes/ierequ/v8y2013i2p129-155.html
   My bibliography  Save this article

Interpretation Of Structural Parameters For Models With Spatial Autoregression

Author

Listed:
  • Michal Bernard Pietrzak

    (Nicolaus Copernicus University, Poland)

Abstract

The main purpose of the article is to consider a important issue of spatial econometrics, which is a proper interpretation of structural parameters of econometric models with spatial autoregression. The problem will be considered basing on the example of the spatial SAR model. Another purpose of the article is to make an overview of measures of average spatial impact proposed by the subject literature (see Lesage and Pace 2009). The analysis will include such measures as Average Total Impact to an Observation, Average Total Impact from an Observation, Average Indirect Impact to an Observation, Average Indirect Impact from an Observation and Average Direct Impact. Having considered the above issues, I will introduce a set of three original measures that allow the interpretation of the strength of the impact of the explanatory processes within the spatial SAR model, which take the forms of average direct impact, average indirect impact and average induced impact. The use of this set of measures will be illustrated with the example of the analysis of the unemployment rate in Poland. It must be emphasized that the presented set of measures may also be designated for other spatial models. With the knowledge of the empirical form of the model and of the spatial weight matrix, the set of measures introduced simplifies significantly the complex procedure of the interpretation of the structural parameters for spatial models to the use of merely three values.

Suggested Citation

  • Michal Bernard Pietrzak, 2013. "Interpretation Of Structural Parameters For Models With Spatial Autoregression," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 8(2), pages 129-155, June.
    • Handle: RePEc:pes:ierequ:v:8:y:2013:i:2:p:129-155
    DOI: 10.12775/EQUIL.2013.016
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.12775/EQUIL.2013.016
    Download Restriction: no
    File URL: https://libkey.io/10.12775/EQUIL.2013.016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Arthur Sweetman, 2002. "Working Smarter: Education and Productivity," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity, volume 2, Centre for the Study of Living Standards;The Institutute for Research on Public Policy.
    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. Michal Bernard Pietrzak, 2014. "Redefining The Modifiable Areal Unit Problem Within Spatial Econometrics, The Case Of The Aggregation Problem," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 9(3), pages 131-151, September.
    2. Michal Bernard Pietrzak, 2016. "The Problem of the Inclusion of Spatial Dependence Within the TOPSIS Method," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 12(3), pages 69-86.
    3. Michal Bernard Pietrzak, 2014. "Redefining The Modifiable Areal Unit Problem Within Spatial Econometrics, The Case Of The Scale Problem," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 9(2), pages 111-132, June.
    4. Miroslaw Biczkowski & Iwona Müller-Fraczek & Joanna Muszynska & Michal Bernard Pietrzak & Justyna Wilk, 2014. "The Delimitation Of Bipolar Metropolitan Area Within The Kujawsko-Pomorskie Region," Oeconomia Copernicana, Institute of Economic Research, vol. 5(2), pages 101-122, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ricardo de Avillez, 2011. "A Detailed Analysis of the Productivity Performance of the Canadian Primary Agriculture Sector," CSLS Research Reports 2011-06, Centre for the Study of Living Standards.
    2. Andrew Sharpe & Ricardo de Avillez, 2012. "A Detailed Analysis of Nova Soctia;s Productivty Performance, 1997-2010," CSLS Research Reports 2012-05, Centre for the Study of Living Standards.

    More about this item

    Keywords

    spatial econometrics; measures of average impact; SAR model; SDM model; spatial autocorrelation;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    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:pes:ierequ:v:8:y:2013:i:2:p:129-155. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adam P. Balcerzak (email available below). General contact details of provider: https://edirc.repec.org/data/ibgtopl.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.