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Spatial Panel Data Models

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Handbook of Applied Spatial Analysis

Abstract

In recent years, the spatial econometrics literature has exhibited a growing interest in the specification and estimation of econometric relationships based on spatial panels. Spatial panels typically refer to data containing time series observations of a number of spatial units (zip codes, municipalities, regions, states, jurisdictions, countries, etc.). This interest can be explained by the fact that panel data offer researchers extended modeling possibilities as compared to the single equation cross-sectional setting, which was the primary focus of the spatial econometrics literature for a long time. Panel data are generally more informative, and they contain more variation and less collinearity among the variables. The use of panel data results in a greater availability of degrees of freedom, and hence increases efficiency in the estimation. Panel data also allow for the specification of more complicated behavioral hypotheses, including effects that cannot be addressed using pure cross-sectional data (see Hsiao 2005 for more details).

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Authors and Affiliations

  1. Department of Economics and Econometrics, University of Groningen, Groningen, The Netherlands

    J. Paul Elhorst

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  1. J. Paul Elhorst
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Correspondence to J. Paul Elhorst .

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Editors and Affiliations

  1. Inst. Wirtschaftsgeographie und, Wirtschaftsuniversität Wien, Nordbergstraße 15/4, Vienna, 1090, Austria

    Manfred M. Fischer

  2. Dept. Geography, San Diego State University, San Diego, 92182-4493, U.S.A.

    Arthur Getis

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Elhorst, J.P. (2010). Spatial Panel Data Models. In: Fischer, M., Getis, A. (eds) Handbook of Applied Spatial Analysis. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-03647-7_19

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  • DOI: https://doi.org/10.1007/978-3-642-03647-7_19

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