In Search of 'W'
2011 (English)In: Spatial Economic Analysis, ISSN 1742-1772, E-ISSN 1742-1780, Vol. 6, no 3, 249-270 p.Article in journal (Refereed) PublishedText
The paper discusses the standard approaches in constructing the spatial weights matrix, W, and the implications of using such approaches in terms of the potential mis-specification of W. We then look at more recent attempts to measure W in the literature, including: Bayesian (searching for 'best fit'); non-parametric techniques; the use of spatial correlation to estimate W; other iteration techniques; and alternative approaches. Lastly, an illustration is provided based on estimating spatial lag models determining establishment level R&D spending in the UK, finding that differently constructed W matrices produce different estimates of spatial spillovers.
Place, publisher, year, edition, pages
2011. Vol. 6, no 3, 249-270 p.
Spatial weights, spatial dependence, spatial models
IdentifiersURN: urn:nbn:se:hj:diva-29435DOI: 10.1080/17421772.2011.586721ISI: 000293056400002ScopusID: 2-s2.0-79960686171OAI: oai:DiVA.org:hj-29435DiVA: diva2:904090