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By Giuseppe Arbia, Badi H. Baltagi

Spatial Econometrics is a speedily evolving box born from the joint efforts of economists, statisticians, econometricians and neighborhood scientists. The booklet offers the reader with a huge view of the subject through together with either methodological and alertness papers. certainly the appliance papers relate to a couple of varied clinical fields starting from hedonic versions of condo pricing to demography, from well-being care to neighborhood economics, from the research of R&D spillovers to the learn of retail marketplace spatial features. specific emphasis is given to nearby financial functions of spatial econometrics equipment with a few contributions particularly excited about the spatial focus of financial actions and agglomeration, neighborhood paths of financial development, local convergence of source of revenue and productiveness and the evolution of local employment. lots of the papers showing during this e-book have been solicited from the foreign Workshop on Spatial Econometrics and facts held in Rome (Italy) in 2006.

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In: Mills T, Patterson K (eds) Palgrave handbook of econometrics, vol 1, Econometric Theory. Palgrave Macmillan, Basingstoke, pp 901–969 Anselin L, Bera A (1998) Spatial dependence in linear regression models with an introduction to spatial econometrics. In: Ullah A, Giles DE (ed) Handbook of applied economic statistics. Marcel Dekker, New York, pp 237–289 Anselin L, Kelejian HH (1997) Testing for spatial error autocorrelation in the presence of endogenous regressors. Int Reg Sci Rev 20:153–182 Errors in variables and spatial effects in hedonic house price models of ambient air quality 33 Anselin L, Le Gallo J (2006) Interpolation of air quality measures in hedonic house price models: spatial aspects.

Econometrica 55:703–708 Pace RK, LeSage JP (2004) Spatial statistics and real estate. J Real Estate Finance Econ 29:147–148 Pace KR, Barry R, Clapp JM, Rodriguez M (1998) Spatial autocorrelation and neighborhood quality. J Real Estate Finance Econ 17(1):15–33 Palmquist RB (1991) Hedonic methods. In: Braden JB, Kolstad CD (eds) Measuring the demand for evironmental quality. North Holland, Amsterdam, pp 77–120 Ridker R, Henning J (1967) The determinants of residential property values with special reference to air pollution.

48 B. Fingleton in which housing demand (qj ) is positively related to income from local jobs(wl E l ), equal to the local wage rate (wl ) times the local employment level (E l ), and to wage and employment levels within commuting distance (wc E c ), and to the quality of local schooling (A). The Appendix gives more detail about these variables. Demand is negatively related to the price of housing ( p j ), and given that high prices drive down demand, it is assumed that high prices ‘nearby’ will cause demand otherwise attributable to nearby locations to be displaced, spilling over into j.

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