Spatial spillover model: a moment method approach

Abstract

. The spatial effect can be in the form of a global overflow over time, which is called a spatial spillover. Spillover occurs when changes in one area cause changes in another. Spatial Durbin Model (SDM) is the development of the spatial autoregressive model (SAR), where the dependent variable and the independent variable both contain spatial effects. In this study, we will determine the estimation of the Spatial Durbin Model (SDM) parameters using the Method of Moment (MM). The results show that the parameter estimation using the Method of Moment in the Spatial Durbin Model (SDM) is unbiased and consistent.