Spatial econometric models are now an established tool for measuring spillover effects between geographical entities. Unfortunately, however, when entities share common borders but are subject to different institutional frameworks, unless this is taken into account the conclusions may be...

The classical stochastic frontier panel data models provide no mechanism for disentangling individual time-invariant unobserved heterogeneity from inefficiency. Greene (2005a, b) proposed the ‘true' fixed-effects specification, which distinguishes these two latent components while allowing for...