Article ID Journal Published Year Pages File Type
5058249 Economics Letters 2016 5 Pages PDF
Abstract

•Partial derivatives for heterogeneous coefficient SAR models are derived.•Scalar summary measures proposed in the literature are not likely to work here.•Observation-level marginal effects are proposed.•Non-linear relationships between estimates and observation-level marginal effects arise as in probit.•Spatial spill-out and spill-in effects can be quantified.

We consider interpretation of estimates from the heterogeneous coefficient spatial autoregressive panel model of Aquaro et al. (2015) and derive partial derivatives (marginal effects) for this model, an issue not discussed in Aquaro et al. (2015). We show how these differ from a conventional spatial autoregressive panel model.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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