While estimates of models with spatial interaction are very sensitive to the choice of spatial weights, considerable uncertainty surrounds de nition of spatial weights in most studies with cross-section dependence. We show that, in the spatial error model the spatial weights matrix is only...

We explore the nature of spatial diffusion of demand in regional housing markets in England. Our structural model, at the regional level, includes a demand function and a rental adjustment relationship expressed in terms of prices. We use a microeconomic model of housing market matching and...

We propose and estimate an economic model of regional housing markets in England andWales, incorporating both the macroeconomic relationships between prices, demand and supply and a microeconomic model of search, matching and price formation. The empirical model, estimated separately for each of...

While estimates of models with spatial interaction are very sensitive to the choice of spatial weights, considerable uncertainty surrounds the definition of spatial weights in most studies with cross-section dependence. We show that, in the spatial error model, the spatial weights matrix is only...

While estimates of models with spatial interaction are very sensitive to the choice of spatial weights, considerable uncertainty surrounds definition of spatial weights in most studies with cross-section dependence. We show that, in the spatial error model the spatial weights matrix is only...

This paper proposes a methodology for estimation of spatial weights matrices which are consistent with a given or estimated pattern of spatial autocovariance. This approach is potentially useful for applications in urban, environmental, development, growth and other areas of economics where...