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In Search of 'W'

Richard Harris, John Moffat, Victoria Kravtsova

Spatial Economic Analysis, Volume: 6, Issue: 3, Pages: 249 - 270

Swansea University Author: John Moffat

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Abstract

<p>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...

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Published in: Spatial Economic Analysis
ISSN: 1742-1772 1742-1780
Published: Routledge 2011
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URI: https://cronfa.swan.ac.uk/Record/cronfa6651
Abstract: <p>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&amp;D spending in the UK, finding that differently constructed W matrices produce different estimates of spatial spillovers. <br /><br /></p>
Keywords: Spatial weights; spatial dependence; spatial models
College: Faculty of Humanities and Social Sciences
Issue: 3
Start Page: 249
End Page: 270