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Structural interactions in spatial panels


Type

Working Paper

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Authors

Bhattacharjee, Arnab 
Holly, Sean 

Abstract

Traditionally, research has been devoted almost exclusively to estimation of underlying structural models without adequate attention to the drivers of diffusion and interaction across cross section and spatial units. We review some new methodologies in this emerging area and demonstrate their use in measurement and inferences on cross section and spatial interactions. Limitations and potential enhancements of the existing methods are discussed, and several directions for new research are highlighted.

Description

Keywords

Cross-sectional and spatial dependence, Spatial weights matrix, Spatial interactions, Monetary policy committee, Generalised method of moments, E42, E43, E50, E58

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Publisher

Faculty of Economics