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...

We analyze households' joint investment decisions for financial wealth and homes. We use a bivariate censored regression model with endogenous switching. Fixed costs or transaction costs are captured by an unobserved nonzero censoring threshold. The model allows for spill-over effects of a...

In most applications of complete systems of demand functions to national accounts data it is implicitly assumed that the demand functions are identified. For post-war Sweden this is not an altogether good assumption because due to rent control there was an excess demand for housing. In this...

After the high growth of 2006, the first quarter of 2007 also shows undiminished high construction production. Evidence of this is provided by the number of hours worked, which see growth rates in double figures in all fields of civil and structural engineering; yet it is surprising that growth...

In 2006, after years of stagnating and even significantly declining production, the construction industry finally experienced a year of strong growth (Table 1). In nominal terms, the industry expanded by 7% in 2006. After allowing for price increases, there was real growth of almost 5%, much...

The sharp slump of the German economy has left its mark on the building sector. Commercial construction has been especially affected by the significant decline in companies' propensity to invest - triggered by the macroeconomic downturn. However, due to the stable development of real wages and...

Trotz der überaus positiven Entwicklung im 1. Quartal 2007 ist nicht zu übersehen, dass sich in der Bauwirtschaft eine Spaltung der Konjunktur abzeichnet. Der Wohnungsbau wird zurückfallen; im gewerblichen Bau wird man dagegen mit konstant hohen Zuwächsen rechnen können. Das gesamte...