Abstract
A Generalized Spatial Panel Data Model with Random Effects
Highlights
While the two data generating processes look similar, they imply di¤erent spatial spillover mechanisms
While the Anselin model seems restrictive in that it does not allow permanent spillovers through the individual ...rm e¤ects, the KKP approach is restrictive in the sense that it does not allow for a di¤erential intensity of spillovers of the permanent and transitory shocks
We consider a maximum likelihood estimator (MLE) for this more general spatial panel model when the individual e¤ects are assumed to be random. This in turn allows us to test the restrictions on our generalized model to obtain (i) the Anselin model, (ii) the Kapoor, Kelejian, and Prucha model, and (iii) a simple random e¤ects model that ignores the spatial correlation in the residuals
Summary
Follow this and additional works at: https://surface.syr.edu/cpr Part of the Economics Commons. Recommended Citation Baltagi, Badi H.; Egger, Peter; and Pfaffermayr, Michael, "A Generalized Spatial Panel Data Model with Random Effects" (2009).
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
