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Spatial Panel Models

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Handbook of Regional Science

Abstract

This chapter provides a survey of the existing literature on spatial panel data models. Both static and dynamic models will be considered. The chapter also demonstrates that spatial econometric models that include lags of the dependent variable and of the independent variables in both space and time provide a useful tool to quantify the magnitude of direct and indirect effects, both in the short term and long term. Direct effects can be used to test the hypothesis as to whether a particular variable has a significant effect on the dependent variable in its own economy and indirect effects to test the hypothesis whether spatial spillovers exist. To illustrate these models and their effects estimates, a demand model for cigarettes is estimated based on panel data from 46 US states over the period 1963–1992.

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Author information

Authors and Affiliations

  1. Department of Economics, Econometrics and Finance, University of Groningen, Nettelbosje 2, 800, 9700, Groningen, The Netherlands

    Prof.Dr. J. Paul Elhorst (Faculty of Economics and Business)

Authors
  1. Prof.Dr. J. Paul Elhorst
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Correspondence to J. Paul Elhorst .

Editor information

Editors and Affiliations

  1. Institute for Economic Geography and GIScience, Vienna University of Economics and Business, Vienna, Austria

    Manfred M. Fischer

  2. and Business Administration Department of Spatial Economics, Free University Faculty of Economics, Amsterdam, The Netherlands

    Peter Nijkamp

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© 2014 Springer-Verlag Berlin Heidelberg

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Elhorst, J.P. (2014). Spatial Panel Models. In: Fischer, M., Nijkamp, P. (eds) Handbook of Regional Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23430-9_86

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  • DOI: https://doi.org/10.1007/978-3-642-23430-9_86

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-23429-3

  • Online ISBN: 978-3-642-23430-9

  • eBook Packages: Business and Economics

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