A two-step approach to account for unobserved spatial heterogeneity. Issue 4 (2nd October 2017)

• Record Type: Journal Article
• Authors: Billé, Anna Gloria; Benedetti, Roberto; Postiglione, Paolo
• Is Part Of: Spatial economic analysis. Volume 12:Issue 4(2017)
• Page Start: 452
• Page End: 471
• Publication Date: 2017-10-02
• Subjects: spatial econometrics -- two step -- spatial heterogeneity -- local estimation -- hedonic house prices; 空间计量经济 -- 二阶段 -- 空间异质性 -- 地方评估 -- 特徵房价; économétrie spatiale -- deux temps -- hétérogénéité spatiale -- estimation locale -- prix hédoniques de l'immobilier; factores econométricos espaciales -- bifásico -- heterogeneidad espacial -- estimación local -- precios hedónicos de la vivienda; C31 -- C63 -- R31; Space in economics -- Periodicals; Economic geography -- Periodicals; Space in economics -- Econometric models -- Periodicals; Urbanization -- Periodicals; Espace (Économie politique) -- Périodiques; Économétrie -- Périodiques; Géographie économique -- Périodiques; Économie industrielle -- Périodiques; Économie du travail -- Périodiques; Économie urbaine -- Périodiques; Politique économique -- Périodiques; Relations économiques internationales -- Périodiques; 330.9
• DOI: 10.1080/17421772.2017.1286373
• Languages: English
• ISSNs: 1742-1772

Abstract

ABSTRACT: A two-step approach to account for unobserved spatial heterogeneity. Spatial Economic Analysis . Empirical analysis in economics often faces the difficulty that the data are correlated and heterogeneous in some unknown form. Spatial econometric models have been widely used to account for dependence structures, but the problem of directly dealing with unobserved spatial heterogeneity has been largely unexplored. The problem can be serious particularly if we have no prior information justified by economic theory. In this paper we propose a two-step procedure to identify endogenously spatial regimes in the first step and to account for spatial dependence in the second step. This procedure is applied to hedonic house price analysis.