Overeducation, regional labor markets, and spatial flexibility

For most workers, access to suitable employment is severely restricted by the fact that they look for jobs in the regional labor market rather than the global one. In this paper we analyze how macrolevel opportunities (regional market characteristics) and microlevel restrictions (the extent to which job searchers are restricted to the regional market) can help to explain the phenomenon of overeducation. We use a two-step procedure to control selective access to employment. The results show that the size of the labor market is an important factor in avoiding overeducation.     

Spatial stochastic frontier models: accounting for unobserved local determinants of inefficiency

This paper analyzes the productivity of farms across 370 municipalities in the Center-West region of Brazil. A stochastic frontier model with a latent spatial structure is proposed to account for possible unknown geographical variation of the outputs. The paper compares versions of the model that include the latent spatial effect in the mean of output or as a variable that conditions the distribution of inefficiency, include or not observed municipal variables, and specify independent normal or conditional autoregressive priors for the spatial effects. The Bayesian paradigm is used to estimate the proposed models. As the resultant posterior distributions do not have a closed form, stochastic simulation techniques are used to obtain samples from them. Two model comparison criteria provide support for including the latent spatial effects, even after considering covariates at the municipal level. Models that ignore the latent spatial effects produce significantly different rankings of inefficiencies across agents.

Instability spillovers in the banking sector: A spatial econometrics approach

In the study, we employ a dynamic spatial panel model to identify factors that are the sources of instability spillover in the banking sector. Using a sample of publicly listed banks, we document that the stability of a bank depends not only on its own characteristics and the macroeconomic conditions of its home country, but also on the stability of other banks in the same and other countries. We find weak evidence that the spillover effects are greater from domestic banks than from foreign ones. This study has significant implications for market regulators in terms of the role of country interdependence as a spillover mechanism during times of financial turbulence.     

Bootstrap J-Test for Panel Data Models with Spatially Dependent Error Components,a Spatial Lag and Additional Endogenous Variables

We develop a bootstrap J-test method for testing a panel model against one non-nested alternative when the competing specifications are estimated by Feasible Generalised Spatial Two Stage Least Squares/Generalised Method of Moments (FGS2SLS/GMM). Both models incorporate spatially correlated error components, thus accounting for spatial heterogeneity via random effects, and accommodate endogenous regressors other than the spatially lagged dependent variable. The proposed scheme is applied to a testing problem involving non-nested wage equations as motivated by the Wage Curve literature and the New Economic Geography theory. Results show that our bootstrap test is a reliable and effective procedure for correcting asymptotic reference critical values and distinguishing between the two rival hypotheses.     

Spatial Cournot competition and economic welfare: a note

We investigated welfare implications in location-quantity models in a symmetric linear city. We found that when firms are not agglomerated in equilibrium, increasing the distance between firms raises (reduces) producer surplus and social welfare (consumer surplus). Moreover, central agglomeration is always optimal for consumers among symmetric locations, but not necessarily for producers. Central agglomeration can be inefficient even if it is the unique equilibrium outcome. In short, the firms are more likely to agglomerate or locate closer than what welfare maximizers would dictate, whereas they locate farther apart than what consumer surplus maximizers would recommend.     

Dynamic Spatial Discrete Choice Using One-step GMM: An Application to Mine Operating Decisions

Abstract

In many spatial applications, agents make discrete choices (e.g. operating or product-line decisions), and applied researchers need econometric techniques that enable them to model such situations. Unfortunately, however, most discrete-choice estimators are invalid when variables and/or errors are spatially dependent. More generally, discrete-choice estimators have difficulty dealing with many common problems such as heteroskedasticity, endogeneity, and measurement error, which render them inconsistent, as well as the inclusion of fixed effects in short panels, which renders them computationally burdensome if not infeasible. In this paper, we introduce a new estimator that can be used to overcome many of the above-mentioned problems. In particular, we show that the one-step (‘continuous updating’) GMM estimator is consistent and asymptotically normal under weak conditions that allow for generic spatial and time series dependence. We use our estimator to study mine operating decisions in a real-options context. To anticipate, we find little support for the real-options model. Instead, the data are found to be more consistent with a conventional mean/variance utility model.

RÉSUMÉ

Choix Discret Dynamique et Spatial: utiliser le GMM à une étape: Application aux Décisions Opérationnelles dans le Secteur Minier

Dans beaucoup d'applications spatiales, les agents font des choix discrets (c'est –à- dire prennent des décisions opérationnelles ou des décisions de production). La recherche appliquée a besoin de techniques économétriques pour modéliser ces situations. Malheureusement, la plupart des indicateurs de choix discret ne signifient rien, lorsque les variables et /ou les erreurs sont spatialement dépendantes. Plus généralement, les indicateurs de choix discret ne gèrent que difficilement la plupart des problèmes rencontrés couramment, comme l'hétéroscédasticité, l'endogénéité et les erreurs de mesure, ce qui les vide de leur sens. Il en est de même avec l'inclusion d'effets fixes dans des panels courts, qui les rend mathématiquement très lourds, si ce n'est irréalisables. Dans cet article, nous introduisons un nouvel indicateur qui peut surmonter les difficultés mentionnées plus haut. En particulier, nous montrons que l'indicateur du GMM à une étape (mise à jour continue) fonctionne et qu'il est normal de façon asymptotique, dans des conditions faibles, qui permettent de rendre dépendantes des séries spatialement et temporellement génériques. Nous utilisons notre indicateur pour étudier les décisions opérationnelles dans le secteur minier dans un contexte d'options réelles. Pour anticiper, nous avons trouvé peu d'arguments en faveur du modèle d'options réelles.Donc, les donnée sont plus parlantes avec un modèle d'utilité conventionelle moyenne/variance.

RESUMEN

Opción discreta espacial dinámica usando el método MGM de un paso: una aplicación a las decisiones operativas en las minas

En muchas aplicaciones espaciales, los agentes optan por elecciones discretas (ej., en las decisiones sobre operaciones o la producción en línea), y para la investigación aplicada se necesitan técnicas econométricas para poder modelar tales situaciones. Por desgracia, la mayoría de los estimadores de elecciones discretas no son válidos cuando las variables, los errores, o ambos, tienen una dependencia espacial. En general, los estimadores de elecciones discretas tienen dificultades para tratar con diferentes problemas tales como la heteroscedasticidad, la endogeneidad, y el error de medición que hacen que sean inconsistentes, así como la inclusión de efectos fijos en paneles cortos que resultan onerosos e incluso imposibles de calcular. En este artículo introducimos un nuevo estimador que puede servir para superar muchos de los problemas antes mentionados. En concreto, demonstramos que el estimador MGM (Método Generalizado de Momentos) de un paso (‘actualización continua’) es consistente y asintóticamente normal en condiciones débiles que permiten una dependencia genérica espacial y temporal. Utilizamos nuesto estimador para estudiar las decisiones operativas en las minas en un contexto de opciones reales. Anticipamos que hallamos poca evidencia a favor del modelo de opciones reales. En cambio, los datos son más consistentes con un modelo de utilidad convencional de media/varianza.     

SPATIAL LIMITED DEPENDENT VARIABLE MODELS: A REVIEW FOCUSED ON SPECIFICATION,ESTIMATION, AND HEALTH ECONOMICS APPLICATIONS

Modeling individual choices is one of the main aim in microeconometrics. Discrete choice models have been widely used to describe economic agents' utility functions and most of them play a paramount role in applied health economics. On the other hand, spatial econometrics collects a series of econometric tools, which are particularly useful when we deal with spatially distributed data sets. Accounting for spatial dependence can avoid inconsistency problems of the commonly used statistical estimators. However, the complex structure of spatial dependence in most of the nonlinear models still precludes a large diffusion of these spatial techniques. The purpose of this paper is then twofold. The former is to review the main methodological problems and their different solutions in spatial nonlinear modeling. The latter is to review their applications to health issues, especially those appeared in the last few years, by highlighting the main reasons why spatial discrete neighboring effects should be considered and suggesting possible future lines of development in this emerging field. Particular attention has been paid to cross‐sectional spatial discrete choice modeling. However, discussions on the main methodological advancements in other spatial limited dependent variable models and spatial panel data models are also included.     

Estimating and interpreting internal migration flows in Russia by accounting for network effects

The present article follows two objectives. First, to apply a recently developed spatial interaction model and discuss its power in explaining social developments. Second, to obtain information on internal migration's determinants in Russia by taking into account that its eastern and western regions differ in many respects. Two alternative panel specifications are considered, labelled “spatial interaction specification with exogenous spatial lags” and “gravity-type specification with network effects”. While both specifications are designed to capture the impacts of neighbouring regions in migration dynamics, they differ with respect to the implementation of fixed effects. It is argued that neighbourhood impacts manifest themselves either as spillover effects, which amplify a variable's impact, or competition effects, which attenuate them. The results show that variables indeed differ from each other in these respects, demonstrating how migration patterns are subject to events beyond the directly involved regions, and that these are furthermore influenced by the distances between regions. In addition, the results provide further evidence that migration determinants differ for Eastern and Western Russia.     

Spatial dependence,agglomeration externalities and the convergence of carbon productivity

By combining the extended slack based measurement (SBM) model directed distance function and the meta-constrained production function to measure China's carbon productivity, this paper studies the spatial spillover effects and convergence characteristics of carbon productivity. According to the results, carbon productivity showed obvious viscosity and spatial dependence in adjacent regions. China's carbon productivity had spatial conditional β-convergence and club convergence effects. Specifically, agglomeration externalities constituted an important mechanism for increasing carbon productivity and realizing the convergence thereof. Different agglomeration forms under different agglomeration degrees corresponded to different carbon productivity levels; with an increase in the degree of agglomeration, the emission reduction effect of specialized agglomeration diminished, while that of diversified agglomeration increased. Furthermore, depending on suitable agglomeration degrees, the emission reduction effect of specialized agglomeration could coexist with that of diversified agglomeration. In terms of regional distribution, in East China, both specialized agglomeration and diversified agglomeration presented relatively significant emission reduction effects. In contrast, in Central China and West China, only specialized agglomeration showed a weak emission reduction effect.     

Interpolation of Air Quality Measures in Hedonic House Price Models: Spatial Aspects

Abstract

This paper investigates the sensitivity of hedonic models of house prices to the spatial interpolation of measures of air quality. We consider three aspects of this question: the interpolation technique used, the inclusion of air quality as a continuous vs discrete variable in the model, and the estimation method. Using a sample of 115,732 individual house sales for 1999 in the South Coast Air Quality Management District of Southern California, we compare Thiessen polygons, inverse distance weighting, Kriging and splines to carry out spatial interpolation of point measures of ozone obtained at 27 air quality monitoring stations to the locations of the houses. We take a spatial econometric perspective and employ both maximum-likelihood and general method of moments techniques in the estimation of the hedonic. A high degree of residual spatial autocorrelation warrants the inclusion of a spatially lagged dependent variable in the regression model. We find significant differences across interpolators in the coefficients of ozone, as well as in the estimates of willingness to pay. Overall, the Kriging technique provides the best results in terms of estimates (signs), model fit and interpretation. There is some indication that the use of a categorical measure for ozone is superior to a continuous one.

RÉSUMÉ

Interpolation des Mesures de la Qualité de l'Air dans les Modèles Hédoniste de l'Estimation Immobilière: Aspects Spatiaux

Cet article examine la sensibilité de l’évaluation hédoniste des prix de l'immobilier à l'interpolation spatiale des mesures de la qualité de l'air. Nous avons envisagé la question sous trois aspects: la technique d'interpolation utilisée, l'introduction de la qualité de l'air comme variable continue ou discrète dans le modèle et la méthode d'estimation. Nous avons utilisé un échantillon de 115 732 ventes de maisons individuelles, en 1999, dans le district Côte Sud de la gestion de la Qualité de l'Air en Californie du Sud. Nous avons comparé les polygônes de Thiessen, la pondération inversement proportionnelle à la distance, le krigeage et les courbes splines pour mener l'interpolation des mesures ponctuelles de l'ozone, obtenues dans 27 stations de suivi de la qualité de l'air en fonction des lieux où étaient situées les maisons. Nous avons pris une perspective spatiale économétrique et employé aussi bien la probabilité maximale que la méthode générale des moments techniques dans l’évaluation de l'hédonique. Un degré élevé d'auto corrélation spatiale résiduelle garantie l'inclusion d'une variable dépendante spatialement décalée dans le modèle de régression. Nous avons trouvé des différences importantes parmi les interpolateurs dans les coefficients d'ozone, ainsi que parmi les indicateurs de la volonté de payer. Surtout, la technique de krigeage donne les meilleurs résultats pour les estimations (signes), l'ajustement du modèle et l'interprétation. L'utilisation d'une mesure nominale pour l'ozone est supérieure à une mesure continue, semble-t-il.

RESUMEN

Interpolación de las medidas de la calidad del aire en los modelos de los precios hedónicos de la vivienda: aspectos espaciales

En este ensayo investigamos la sensibilidad de los modelos de lo precios hedónicos de la vivienda para la interpolación espacial de medidas de la calidad del aire. Tenemos en cuenta tres aspectos al respecto: la técnica de interpolación utilizada, la inclusión de la calidad del aire como variable continua, en vez de discreta, en el modelo, y el método de cálculo. Con una muestra de 115.732 ventas de viviendas individuales durante 1999 en el Distrito de Gestión de Calidad del Aire de la Costa Sur en California, comparamos los polígonos de Thiessen, la ponderación de la distancia inversa, métodos geoestadísticos o Kriging y métodos basados en splines para llevar a cabo la interpolación espacial de las mediciones puntuales de ozono obtenidas en 27 estaciones de control de calidad del aire en los lugares donde están situadas las viviendas. Desde la perspectiva econométrica espacial empleamos las técnicas de la probabilidad máxima del método general de momentos en el cálculo de precios hedónicos. Debido a un alto grado de autocorrelación espacial residual debemos incluir una variable dependiente espacialmente rezagada en el modelo de regresión. Se observan diferencias importantes entre los interpoladores en los coeficientes del ozono y en los cálculos de la disposición a pagar. En general, la técnica Kriging da los mejores resultados en cuanto a los cálculos (señales), la idoneidad del modelo y la interpretación. Hay indicios de que es mejor usar una medida categórica para el ozono en vez de una continua.     

Financial openness and Chinese regional growth imbalance: New insight from spatial spillovers

This paper uses spatial panel methods and Chinese provincial data from 2003 to 2017 to study the spatial spillovers of financial openness on economic growth. The results show, first, a positive direct effect and an overall negative spatial spillover of financial openness on provincial growth. Second, there are two spatial spillover channels: a positive growth externality and a harmful resource competition among provinces. Third, we estimate the state dependence and dynamics of spatial spillover, and find that the negative spatial spillover is smaller in provinces with high levels of financial openness and in the long term; thus, the negative spatial spillover declined over time. These results are robust to the choice of SDM and GNS spatial econometrics methods and under different spatial weight matrices.     

Heteroskedasticity and non-normality robust LM tests for spatial dependence

The standard LM tests for spatial dependence in linear and panel regressions are derived under the normality and homoskedasticity assumptions of the regression disturbances. Hence, they may not be robust against non-normality or heteroskedasticity of the disturbances. Following Born and Breitung (2011), we introduce general methods to modify the standard LM tests so that they become robust against heteroskedasticity and non-normality. The idea behind the robustification is to decompose the concentrated score function into a sum of uncorrelated terms so that the outer product of gradient (OPG) can be used to estimate its variance. We also provide methods for improving the finite sample performance of the proposed tests. These methods are then applied to several popular spatial models. Monte Carlo results show that they work well in finite sample.     

Applied Spatial Econometrics: Raising the Bar

Abstract

This paper places the key issues and implications of the new ‘introductory’ book on spatial econometrics by James LeSage & Kelley Pace (2009) in a broader perspective: the argument in favour of the spatial Durbin model, the use of indirect effects as a more valid basis for testing whether spatial spillovers are significant, the use of Bayesian posterior model probabilities to determine which spatial weights matrix best describes the data, and the book's contribution to the literature on spatio-temporal models. The main conclusion is that the state of the art of applied spatial econometrics has taken a step change with the publication of this book.

Relever le niveau de l'économetrie spatial appliquée

RÉSUMÉ La présente communication place les principales questions et implications du nouvel ouvrage d'introduction sur l'économétries spatiale de James LeSage & Kelley Pace (2009) dans un contexte plus général: l'argument favorisant le modèle spatial de Durbin, l'emploi d'effets indirects comme base plus valable pour évaluer l'aspect significatif des déversements spatiaux, l'emploi des probabilités d'un modèle baysien postérieur pour évaluer laquelle des matrices de poids spatiaux décrit le mieux les donnes, et la contribution de l'ouvrage la documentation sur les modèles spatio-temporels. La principale conclusion est qu'avec la publication de cet ouvrage, l'état de l'art de l'économétries spatiale applique a effectué un grand pas en avant.

Alzar el nivel de la econometría espacial aplicada

RÉSUMÉ Este trabajo plantea las cuestiones e implicaciones clave del nuevo libro introductorio sobre económetra espacial de James LeSage & Kelley Pace (2009) dentro de una perspectiva más amplia: el argumento a favor del modelo espacial Durbin, el uso de efectos indirectos como una base más válida para poner a prueba si los desbordamientos espaciales son significativos, el uso de probabilidades posteriores bayesianas para descubrir que matriz de pesos espaciales describe mejor los datos, y la contribución del libro a la bibliógrafa sobre modelos espaciotemporales. La principal conclusión es que la econometría espacial aplicada más avanzada ha experimentado un cambio radical con la publicación de este libro.

     

Impact of high-speed railway construction on spatial patterns of regional economic development along the route: A case study of the Shanghai–Kunming high-speed railway

The Shanghai–Kunming high-speed railway spans the eastern, central, and western regions of China and is an important "horizontal" in the "eight vertical and eight horizontal" railway network of China. This paper estimates the direct impact of opening a high-speed railway on the spatial patterns of regional economic development along the route by integrating GIS technology, spatial panel data models, and the entropy method. The results show that the high-speed railway can significantly increase the economic aggregate and urbanization rates along the route and promote the upgrading of industrial structures, but it has a limited effect on the economic growth rate, showing a weak trend. In terms of spatial patterns, the high-speed railway significantly improves regional accessibility, the strength of economic ties, and economic potential along the route. The regional economy is characterized by weak spatial agglomeration and presents a trend of balanced development. In general, although the economic effect of HSR for the economically lagged regions is smaller in the short term than that in the economically and less economically developed regions, the high-speed railway has the greatest impact on regional economic development and spatial patterns in economically backward areas, thus the economically backward regions have a greater posterior advantage, which is conducive to balancing regional economies and narrowing regional differences.     

The interplay between the Bayesian and frequentist approaches: a general nesting spatial panel data model

The interplay between the Bayesian and Frequentist approaches: a general nesting spatial panel-data model. Spatial Economic Analysis. An econometric framework mixing the Frequentist and Bayesian approaches is proposed in order to estimate a general nesting spatial model. First, it avoids specific dependency structures between unobserved heterogeneity and regressors, which improves mixing properties of Markov chain Monte Carlo (MCMC) procedures in the presence of unobserved heterogeneity. Second, it allows model selection based on a strong statistical framework, characteristics that are not easily introduced using a Frequentist approach. We perform some simulation exercises, finding good performance of the properties of our approach, and apply the methodology to analyse the relation between productivity and public investment in the United States.     

Good neighbours matter: economic geography and the diffusion of human rights

Using multi-country panel data, this paper investigates the geopolitical and economic aspects of human rights performance. Human rights performance depends on the relative levels of economic development and spatial proximity to ‘good’ and ‘bad’ neighbours. The paper tests for basic effects of income, and applies spatial weighting models, to analyse the neighbours’ impact on human rights levels, treating this impact as partly endogenous. It takes into account size and distance when comparing each country’s human rights performance with what would be predicted from a weighted average of its neighbours’ performance. There are (1) geographical clusters and (2) size and proximity effects for human rights performance.     

空间正义:形成、内涵及意义

社会科学的空间转向、新社会运动的发展以及多个学科不同路径的研究共同开启和推动了关于空间正义的思考.在众多学者研究的基础上.本文从空间和正义两个角度对空问正义概念进行了阐释.空间正义不仅是正义在空间的表现,而且植根于空间和空间生产的过程,受空间所强化的支配和压制的影响.为使其更具政策意义,本文较为详尽地分...     

Spatial dynamics of major infectious diseases outbreaks: A global empirical assessment

We explore the space–time and mortality dynamics of recent infectious diseases outbreaks which have occurred in a large number of developed and developing countries. We fully acknowledge the heterogeneity of infectious diseases. We find that many outbreaks exhibit spatial dependence, due to the international movement of people and goods. All countries are exposed to these negative cross-border health externalities, which can be triggered by climate shocks. The mortality consequences are much more severe in developing countries. Paying attention to spatial dependence has important implications for economic research and international policymaking.     

Enterprise and Competitive Advantage in the Australian Context: A Spatial Econometric Perspective

Abstract

Contemporary understanding of the evolution of the geography of uneven development is dominated by research derived from either the ‘new’ geographical economics or the new regionalism, typically in the context of either the European Union or North America. By way of contrast, we consider local economic performance in the Australian context. Building on Fingleton's work, we employ a spatial econometric modeling methodology to account for the role of both endogenous technological change and export orientation in determining local competitive advantage. The evidence suggests that competitiveness depends on both the indigenous characteristics of a local economy and its exposure to global competition.

Entreprise et compétitivité dans le contexte australien: une perspective économétrique spatiale

Résumé Les connaissances contemporaines sur l’évolution de la géographie de développements irréguliers sont dominées par la recherche dérivée d'une « nouvelle » économie géographique ou du nouveau régionalisme, généralement dans le contexte de l'Union européenne ou de l'Amérique du Nord. A titre de contraste, nous examinons les performances économiques locales dans le contexte de l'Australie. En nous basant sur Fingleton, nous appliquons une méthodologie de modélisation économétrique spatiale pour interpréter le rôle de variations technologiques endogènes et de l'orientation de l'exportation dans la détermination de la compétitivité locale. Les résultats des recherches indiquent que la compétitivité est tributaire à la fois des caractéristiques indigènes d'une économie locale et de son exposition à la concurrence mondiale.

Empresas y la ventaja competitiva en el contexto australiano: una perspectiva econométrica espacial

Extracto La comprensión contemporánea de la geografía evolutiva del desarrollo desigual está dominada por investigación derivada de la ‘nueva’ economía geográfica o del nuevo regionalismo, típicamente en el contexto de la Unión Europea o de Norteamérica. A modo de contraste, consideramos el rendimiento económico local dentro del contexto australiano. Basándonos en Fingleton, empleamos una metodología de modelación econométrica espacial para tener en cuenta la función del cambio tecnológico endógeno y la orientación de la exportación a la hora de determinar la ventaja competitiva local. La evidencia sugiere que la competitividad depende de las características indígenas de una economía local y en su exposición a la competencia global.