Estimating individual effects and their spatial spillovers in linear panel data models: Public capital spillovers after all?

Karen Miranda, Oscar Martínez Ibáñez and Miguel Manjon Antolin

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: Individual-specific effects and their spatial spillovers are not generally identified in linear panel data models. In this paper we present identification conditions under the assumption that covariates are correlated with the individual-specific effects and derive appropriate GLS and IV estimators for the resulting correlated random effects spatial panel data model. We also illustrate the proposed estimators using a Cobb-Douglas production function specification and US state-level data from Munnell (1990). As in previous studies, we find no evidence of public capital spillovers. However, public capital does play a role in the positive "outwards" spatial contagion of the individual effects. Keywords: correlated random effects, spatial spillovers, panel data. JEL Classification: C23, R11

Keywords: Anàlisi de dades de panel; Economia regional; Estats Units d' Amèrica (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/2072/321479

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: https://EconPapers.repec.org/RePEc:urv:wpaper:2072/321479

Access Statistics for this paper

More papers in Working Papers from Universitat Rovira i Virgili, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ariadna Casals ().