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Faculty of Economics

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Bhattacharjee, A. and Holly, S.

Structural Interactions in Spatial Panels


Abstract: Traditionally, research has been devoted almost exclusively to estimation of underlying structural models without adequate attention to the drivers of diffusion and interaction across cross section and spatial units. We review some new methodologies in this emerging area and demonstrate their use in measurement and inferences on cross section and spatial interactions. Limitations and potential enhancements of the existing methods are discussed, and several directions for new research are highlighted.

Keywords: Cross Sectional and Spatial Dependence, SpatialWeights Matrix, Interactions and Diffusion, Monetary Policy Committee, Generalised Method of Moments

JEL Codes: E42 E43 E50 E58

Author links: Sean Holly  


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