Nonparametric estimation of the spatial connectivity matrix using spatial panel data

Michael Beenstock, Daniel Felsenstein*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

23 Scopus citations

Abstract

We use moments from the covariance matrix for spatial panel data to estimate the parameters of the spatial autoregression model, including the spatial connectivity matrix W. In the unrestricted spatial autoregression model, the parameters are underidentified by one when W is symmetric. We show that a special case exists in which W is asymmetric and its parameters are exactly identified. If the panel data are stationary and ergodic, spatially and temporally, the estimates of W and the spatial autoregression coefficients are consistent. Spatial panel data for house prices in Israel are used to illustrate this methodology.

Original languageEnglish
Pages (from-to)386-397
Number of pages12
JournalGeographical Analysis
Volume44
Issue number4
DOIs
StatePublished - Oct 2012

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