Group Interaction in Research and the Use of General Nesting Spatial Models

Peter Burridge, J.Paul Elhorst and Katarina Zigova

No 2014-19, Working Paper Series of the Department of Economics, University of Konstanz from Department of Economics, University of Konstanz

Abstract: This paper tests the feasibility and empirical implications of a spatial econometric model with a full set of interaction effects and weight matrix defined as an equally weighted group interaction matrix applied to research productivity of individuals. We also elaborate two extensions of this model, namely with group fixed effects and with heteroskedasticity. In our setting the model with a full set of interaction effects is overparameterised: only the SDM and SDEM specifications produce acceptable results. They imply comparable spillover effects, but by applying a Bayesian approach taken from LeSage (2014), we are able to show that the SDEM specification is more appropriate and thus that colleague interaction effects work through observed and unobserved exogenous characteristics common to researchers within a group.

Keywords: Spatial econometrics; identifcation; heteroskedasticity; group fixed effects; interaction effects; research productivity (search for similar items in EconPapers)
JEL-codes: C21 D8 I23 J24 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2014-09-17
New Economics Papers: this item is included in nep-ecm, nep-eff, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Chapter: Group Interaction in Research and the Use of General Nesting Spatial Models (2016)
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