We consider estimation and inferences for fixed effects spatial panel data models based on unbalanced panels that arise from nonparticipation or inaction of some spatial units in certain time periods. The unbalanced nature of the panel data renders the standard transformation method of...

Recent theoretical approaches stress the importance of complex integration strategies of multinationals and the interdependence between locations. Up till now little has been done to incorporate the potential cross-country dependencies into the empirical analysis of the determinants and the...

In this article we propose two-step generalized method of moment (GMM) procedure for a Spatial Binary Probit Model. In particular, we propose a series of two-step estimators based on different choices of the weighting matrix for the moments conditions in the first step, and different estimators...

This paper studies how the strength of social ties are affected by the geographical location of other individuals and their social capital. We characterize the equilibrium in terms of both social interactions and social capital. We show that lower travel costs increase not only the interaction...

This paper brings forward a novel Bayesian estimation and model selection method for spatial dynamic panel data model with convex combinations of different spatial weight matrices. We reparameterize the model as a high order spatial panel model, and recover the importance weights by a...

When there are efficiency spillovers, we can use a spatial autoregressive stochastic frontier model to estimate total (spillover-corrected) efficiencies. Glass et al. (2016) ( Journal of Econometrics ) provide a formula for total efficiency in this context, which is an approximation. We provide...

We extend LeSage and Pace's (2008) spatial autoregressive model for origin-destination flows by accommodating two-way fixed effects. Those fixed effects represent unobserved characteristics of origin and destination units. A partial likelihood approach is used to remove fixed effects in the...

How likely is financial contagion when banks anticipate an aggregate liquidity shock and what are the consequences for bank choices, welfare, and regulation? We study an economy with two regional banks that insure risk-averse consumers against their idiosyncratic liquidity shocks and hold...