Baltagi, Badi H.; Egger, Peter; Pfafermayr, Michael - Center for Policy Research, Maxwell School - 2009
This paper prooses a generalized panel data model with random effects and first-order spatially autocorrelated residuals that encompasses two previously suggested specifications. The first one is described in Anselin's (1988) book and the second one by Kapoor, Kelejian, and Prucha (2007). Our...