Estimation of Spatial Weights Matrix in a Spatial Error Model, with an Application to Diffusion in Housing Demand

Arnab Bhattacharjee () and Chris Jensen-Butler

No 519, CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm

Abstract: This paper proposes a methodology for estimation of spatial weights matrices which are consistent with a given or estimated pattern of spatial autocovariance. This approach is potentially useful for applications in urban, environmental, development, growth and other areas of economics where there is uncertainty regarding the nature or spatial (or cross-sectional) interaction between regions (or economic agents). The proposed methodology is applied to housing markets in England and Wales and several new hypotheses are advanced about the social and economic forces that determine spatial diffusion in housing demand.

Keywords: Spatial econometrics; Spatial autocorrelation; Spatial weights matrix, Spatial error model; Housing demand (search for similar items in EconPapers)
JEL-codes: C14 C15 C30 C31 R21 R31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm, nep-geo and nep-ure
Date: 2005-12
View list of references View citations in EconPapers

Downloads: (external link)
http://www.st-andrews.ac.uk/crieff/papers/dp0519.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:san:crieff:0519

Access Statistics for this paper

More papers in CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm
Address: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
Series data maintained by Tatiana Damjanovic ().