Research projects

Project CEMAPRE internal

TitleEssays in Spatial Econometrics
ParticipantsIsabel Proença (Principal Investigator), Luís Silveira Santos
SummaryThe present project aims to contribute to the spatial panel data literature, regarding the
specification and estimation of a parametric model for discrete dependent variables. The treatment
of the unobserved heterogeneity will be a central issue.
In recent years, several authors discussed the importance of modelling cross-sectional dependence in
spatial data, due to the interactions established between different units (regions, firms, ...)
inside the same country or a well-defined area. Ignoring such dependence structure may lead
misleading economic interpretation and biased estimates, especially when N is large relatively to
T.
With regard to the complexity of introducing these spatial interactions in the estimation,
innovative methods and algorithms will be introduced. The asymptotic properties of the estimator
will be derived and Monte Carlo simulations will be conducted.
Finally, these methods will be applied to study the determinants of regional competitiveness in the
Metropolitan Areas, accounting for unit-specific and spillover effects in terms of social, economic
and technological growth over the neighboring areas.