The authors develop an empirical approach to examine static and dynamic knowledge externalities in the context of a regional total factor productivity (TFP) relationship. Static externalities refer to current period scale or industry-size effects that have been labeled localization externalities...

Spatial contiguity relationships represent a frequently ignored source of information that is available to economists modeling cross-sections of metropolitan areas, counties, states, regions, and countries. Shown here is how contiguity relationships can be incorporated as prior information in...

This study applies vector autoregressive modeling techniques to examine a wage transmission hypothesis. The techniques produce a model that quantifies the magnitude and timing of intercity interdependencies in the determination of wage rates. The Granger-Sims notion of causality is used to...

Spatial econometrics has relied extensively on spatial autoregressive models. Anselin (1988) developed a taxonomy of these models using a regression model framework and maximum likelihood estimation methods. A Bayesian approach to estimating these models based on Gibbs sampling is introduced...

Recent literature on border effect has demonstrated that national trade (intra- as well as interregional trade) tends to be more intense than international trade. Unfortunately, owing to the dearth of information on interregional economic relations, this important aspect of the economy has...