The SHAC estimator in panel data with group-specific spatial lags
An adaptation of the spatial heteroskedasticity autocorrelation consistent
(SHAC) estimator from the context of a single cross section to a panel data environment
is presented. The spatial model involved with the SHAC estimator is generalized to
allow spatial lag parameters and spatial weights to vary across groups of cross section
members. A model of earnings growth in the 48 contiguous states of the U.S. grouped
into eight subnational regions, is used as an illustration. The traditional production
inputs of labor, physical capital, and human capital are significant determinants of
earnings growth. Significant differences between the spatial lag parameters of subnational
regions are found.
||The SHAC estimator in panel data with group-specific spatial lags
Letters in Spatial and Resource Sciences (Jul, 2014)
||Schmidt, James R; Tran, Hoa Phu D.
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|Schmidt, James R||Economics