The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Spatial Econometrics

  • Timothy G. Conley
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2023

Abstract

Spatial econometrics is concerned with modelling dependent observations indexed by points in a space. Complicated patterns of interdependence can be parsimoniously described in terms of these points’ locations. Covariances between observations, for example, can be modelled as functions of their distances. Index spaces are not limited to the physical space or times inhabited by economic agents and can be as abstract as required by the economics of the application. This entry discusses the use of generalized method of moments and other common estimators with spatial data, as well as simultaneous equation methods specialized to certain types of spatial data.

Keywords

Data generation processes Generalized method of moments Heteroskedasticity and autocovariance Index space Inference Interactions-based models Kernels Locations/distances Maximum likelihood estimators Nonparametric estimators Simultaneous equations models Simultaneous spatial autoregression Spatial correlation Spatial econometrics Spatial weights matrix Spectral density Spectral methods Time series models Unobservable variables 

JEL Classifications

C21 C31 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Timothy G. Conley
    • 1
  1. 1.