Spatial estimators usually provide lower prediction errors than their aspatial counterparts. However, most of the standard techniques require a large number of operations. Fortunately, for a given observation only a relatively small number of nearby observations typically exhibit correlated...

Given local spatial error dependence, one can construct sparse spatial weight matrices. As an illustration of the power of such sparse structures, we computed a simultaneous autoregression using 20 640 observations in under 19 min despite needing to compute a 20 640 by 20 640 determinant 10 times.

Real estate has historically employed statistical tools designed for independent observations while simultaneously noting the violation of these assumptions in the form of clustering of same sign residuals by neighborhood, along roads, and near facilities such as airports. Spatial statistics...

Using 70,822 observations on housing prices during 1969-91 from Fairfax County Virginia, this manuscript demonstrates the substantial benefits obtained by modeling the spatial as well as the temporal dependence of the data. Specifically, the spatio temporal autoregression with 12 variables...