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On Deriving Reduced-Form Spatial Econometric Models from Theory and Their Ws from Observed Flows: Example Based on the Regional Knowledge Production Function

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Regional Research Frontiers - Vol. 2

Part of the book series: Advances in Spatial Science ((ADVSPATIAL))

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Abstract

Recent spatial econometric contributions call for empirical models to be more often derived from spatial theory and W matrices to be more closely related to actual inter-regional linkages. This manuscript answers this call by reviewing some of the latest developments and suggesting future research venues along these lines. All examples are based on the regional knowledge production function literature as enormous advances focusing on the spatial nature of the dynamics at work have taken place sinces Griliches (Bell J Econ 10(1):92–116, 1979) seminal but aspatial contribution. Furthermore, this literature offers several examples of spatial weight matrices that offer innovative ways to account for the nature, magnitude, asymmetry and directionality of inter-regional (knowledge) spillovers. We foresee that other exciting regional science topics will follow this path.

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Author information

Authors and Affiliations

  1. Department of Agricultural and Consumer Economics and Regional Economics Applications Laboratory, University of Illinois at Urbana-Champaign, Champaign, IL, USA

    Sandy Dall’erba

  2. Korea Labor Institute, Sejong, South Korea

    Dongwoo Kang

  3. Graduate Interdisciplinary Program in Statistics and Regional Economics and Spatial Modeling Laboratory, University of Arizona, Tucson, AZ, USA

    Fang Fang

Authors
  1. Sandy Dall’erba
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  2. Dongwoo Kang
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  3. Fang Fang
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Corresponding author

Correspondence to Sandy Dall’erba .

Editor information

Editors and Affiliations

  1. Regional Research Institute, West Virginia University, Morgantown, West Virginia, USA

    Randall Jackson

  2. Division of Resource Economics and Management, Faculty Research Associate, Regional Research Institute, West Virginia University, Morgantown, West Virginia, USA

    Peter Schaeffer

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Dall’erba, S., Kang, D., Fang, F. (2017). On Deriving Reduced-Form Spatial Econometric Models from Theory and Their Ws from Observed Flows: Example Based on the Regional Knowledge Production Function. In: Jackson, R., Schaeffer, P. (eds) Regional Research Frontiers - Vol. 2. Advances in Spatial Science. Springer, Cham. https://doi.org/10.1007/978-3-319-50590-9_7

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