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A two-step approach to account for unobserved spatial heterogeneity
- Source :
- Spatial Economic Analysis 2017
- Publication Year :
- 2016
-
Abstract
- Empirical analysis in economics often faces the difficulty that the data is correlated and heterogeneous in some unknown form. Spatial parametric approaches have been widely used to account for dependence structures, but the problem of directly deal with spatially varying parameters has been largely unexplored. The problem can be serious in all those cases in which we have no prior information justified by the economic theory. In this paper we propose an algorithm-based procedure which is able to endogenously identify structural breaks in space. The proposed algorithm is illustrated by using two well known house price data sets.
- Subjects :
- Statistics - Methodology
Statistics - Applications
Subjects
Details
- Database :
- arXiv
- Journal :
- Spatial Economic Analysis 2017
- Publication Type :
- Report
- Accession number :
- edsarx.1602.05757
- Document Type :
- Working Paper
- Full Text :
- https://doi.org/10.1080/17421772.2017.1286373