Fixed effects spatial panel data models with time-varying spatial dependence

摘要

To analyze the temporal variation of spatial spillover effects as well as control unobserved individual-specific features, we extend the fixed effects spatial panel data model by introducing time-varying spatial dependence. We propose a two-stage least squares (2SLS) method and a quasi-maximum likelihood estimator (QMLE). Monte Carlo simulations indicate the two methods perform well. (C) 2020 Elsevier B.V. All rights reserved.