GME estimation of spatial structural equations models

The objective of this paper is to develop a GME formulation for the class of spatial structural equations models (S-SEM). In this respect, two innovatory as- pects are introduced: (i) the formalization of the GME estimation approach for the spatial structural equations models which accounts for spatial heterogeneity and spa- tial dependence; (ii) the extension of the methodology to a panel data framework. We also present an application of the method to real data finalized to investigate dispari- ties of unemployment rates in OECD countries over the period 1998-2006.