Project CEMAPRE internal
|Title||Fractional responses with spatial dependence|
|Participants||Luís Santos (Principal Investigator)|
|Summary||The present project aims to contribute to the spatial panel data literature, regarding the|
specification and estimation of a parametric model for discrete dependent variables.
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.
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 assessed through a detailed Monte Carlo simulation study.
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.