This paper develops a regional production function model for Swiss cantons that incorporates human capital together with spatial effects. Within a spatial panel framework we find that controlling for time effects the spatial spillover effect becomes insignificant. Our results are sensitive with...

Economists expect positive returns to investments in infrastructure. However a project with higher national returns might have less favourable effects on a regional level than the alternative. Therefore new infrastructure should also be assessed on a regional level, but econom(etr)ic evaluation...

We suggest a new class of cross-sectional space-time models based on local AR models and nearest neighbors using distances between observations. For the estimation we use a tightness prior for prediction of regional GDP forecasts. We extend the model to the model with exogenous variable model...