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HOW RELIABLE ARE THE GEOGRAPHICAL SPATIAL WEIGHTS MATRICES?

Davide Fiaschi () and Angela Parenti ()

Region et Developpement, 2014, vol. 40, 53-68

Abstract: This paper shows how it is possible to estimate the interconnections between regions by a connectedness matrix recently proposed by Diebold and Yilmaz (2014), and discusses how the connectedness matrix is strictly related to the spatial weights matrix used in spatial econometrics. An empirical appli-cation using growth rate volatility of per capita GDP of 199 European NUTS2 regions (EU15) over the period 1981-2008 illustrates how our estimated connectedness matrix is not compatible with the most popular geographical weights matrices used in literature.

Keywords: FIRST-ORDER CONTIGUITY; DISTANCE-BASED MATRIX; CONNECTEDNESS MATRIX; EUROPEAN REGIONS; NETWORK (search for similar items in EconPapers)
JEL-codes: C23 R11 R12 O52 (search for similar items in EconPapers)
Date: 2014
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Related works:
Working Paper: How Reliable Are the Geographical Spatial Weights Matrices? (2015) Downloads
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