This paper studies the spatial random effects and spatial fixed effects model. The model includes a Cliff and Ord type spatial lag of the dependent variable as well as a spatially lagged one-way error component structure, accounting for both heterogeneity and spatial correlation across units. We...

This paper analyses the entire wage effects of unemployment for an especially long observation period. In a three‐step approach, the wage reaction at the national level (wage‐setting curve or aggregate wage equation) is added to the reaction at the regional level (wage curve). Spatial models...