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Social and Behavioral Sciences Commons

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Economics

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West Virginia University

2006

Appalachia

Articles 1 - 3 of 3

Full-Text Articles in Social and Behavioral Sciences

County-Level Determinants Of Local Public Services In Appalachia: A Multivariate Spatial Autoregressive Model Approach, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Peter V. Schaeffer Jan 2006

County-Level Determinants Of Local Public Services In Appalachia: A Multivariate Spatial Autoregressive Model Approach, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Peter V. Schaeffer

Regional Research Institute Working Papers

A multivariate spatial autoregressive model of local public expenditure determination with autoregressive disturbance is developed and estimated in this paper. The empirical model is developed on the principles of utility maximization of a strictly quasi concave community utility function. The existence of spatial interdependence is tested using Moran’s I statistic and Lagrange Multiplier test statistics for both the spatial error and spatial lag models. The full model is estimated by efficient GMM following Kelejian and Prucha’s (1998) approach using county-level data from 418 Appalachian counties. The results indicate the existence of significant spillover effects among local governments with respect to …


Modeling Small Business Growth, Migration Behavior, And Household Income In Appalachia: A Spatial Simultaneous Equations Approach, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Peter V. Schaeffer Jan 2006

Modeling Small Business Growth, Migration Behavior, And Household Income In Appalachia: A Spatial Simultaneous Equations Approach, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Peter V. Schaeffer

Regional Research Institute Working Papers

In this paper, a spatial simultaneous equations model of business growth, migration behavior and median household income is empirically estimated. The empirical simultaneous model is developed from the equilibrium relationships among these variables where each variable is assumed to adjust to its equilibrium level with a substantial lag through a partial equilibrium adjustment process. We use Generalized Spatial Three-Stage Least Squares estimator to estimate the empirical model using data from 418 Appalachian counties for 1990- 2000. The results suggest the existence of very strong interdependences among business growth, migration behavior and median household income in the form of feed-back simultaneities, …


An Empirical Analysis Of County-Level Determinants Of Small Business Growth And Poverty In Appalachia: A Spatial Simultaneous-Equations Approach, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Peter V. Schaeffer Jan 2006

An Empirical Analysis Of County-Level Determinants Of Small Business Growth And Poverty In Appalachia: A Spatial Simultaneous-Equations Approach, Gebremeskel H. Gebremariam, Tesfa Gebremedhin, Peter V. Schaeffer

Regional Research Institute Working Papers

A spatial simultaneous-equations growth equilibrium model estimated by GS2SLS and GS3SLS estimators is used to determine the interdependence between small business growth and poverty. The parameter estimates are mostly consistent with the theoretical expectations. The coefficients for the endogenous variables of the model are positive and significant indicating strong interdependence (feedback simultaneity) between small business and median household income growth rates. The results also show the presence of spatial autoregressive lag simultaneity and spatial cross-regressive lag simultaneity, with respect to both small business and median household income growth rates, and the existence of spatial correlation in the error terms. In …