Estimation of spatial weights matrix in a spatial error model, with an application to diffusion in housing demand

Arnab Bhattacharjee, Chris Jensen-Butler

    Research output: Working paper

    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.
    Original languageEnglish
    Place of PublicationSt. Andrews
    PublisherCentre for Research into Industry, Enterprise, Finance and the Firm
    Publication statusPublished - 2005

    Publication series

    NameCRIEFF Discussion Papers

    Keywords

    • spatial econometrics
    • spatial autocorrelation
    • spatial weights matrix
    • spatial error model
    • housing demand
    • gradient projection

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