Chapter Five - Spatial econometric models

Abstract

Section 5.1 of this chapter provides a brief review of spatial econometrics. Section 5.2 describes various types of spatial econometric models. Impact measures are also explained here. Section 5.3 explains representative parameter estimation methods for spatial econometric models. Sections 5.4 and 5.5 introduce likelihood-based tests for spatial autocorrelation and spatial heterogeneity, respectively. Section 5.6 explains the remaining important models that were not explained in Section 5.2. Finally, Section 5.7 explores the methods that seem useful when we apply spatial econometric models to a large dataset.