Mutl, Jan; Pfaffermayr, Michael - In: Econometrics Journal 14 (2011) 02, pp. 48-76
<b> </b> This paper studies the random effects model and the fixed effects model for spatial panel data. 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...