In search of ‘W’

Harris, R., Moffat, J. and Kravtsova, V. (2011) In search of ‘W’. Spatial Economic Analysis, 6(3), pp. 249-270. (doi: 10.1080/17421772.2011.586721)

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Abstract

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&D spending in the UK, finding that differently constructed W matrices produce different estimates of spatial spillovers.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Harris, Prof Richard and Kravtsova, Dr Victoria and Moffat, Dr John
Authors: Harris, R., Moffat, J., and Kravtsova, V.
Subjects:H Social Sciences > HB Economic Theory
Q Science > QA Mathematics
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Spatial Economic Analysis
ISSN:1742-1772
ISSN (Online):1742-1780
Published Online:12 July 2011

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