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Full-Text Articles in Social and Behavioral Sciences
A Generalized Spatial Panel Data Model With Random Effects, Badi H. Baltagi, Peter Egger, Michael Pfaffermayr
A Generalized Spatial Panel Data Model With Random Effects, Badi H. Baltagi, Peter Egger, Michael Pfaffermayr
Center for Policy Research
This paper proposes a generalized panel data model with random effects and first-order spatially auto correlated residuals that encompasses two previously suggested specifications. The first one is described in Anselin's (1988) book and the second one by Kapoor, Kelejian, and Prucha (2007). Our encompassing specification allows us to test for these models as restricted specifications. In particular, we derive three LM and LR tests that restrict out generalized model to obtain (i) the Anselin model, (ii) the Kapoor, Kelejian, and Prucha model, and (iii) the simple random effects model that ignores the spatial correlation in the residuals. For two of …
Hedonic Markets And Explicit Demands: Bid-Function Envelopes For Public Services, Neighborhood Amenities, And Commuting Costs, John Yinger
Center for Policy Research
Hedonic regressions with house value as the dependent variable are widely used to study the value of public services and amenities. This paper builds on the theory of household bidding and sorting to derive a bid function envelope, which provides a form for these regressions. This approach uses a general characterization of household heterogeneity, yields estimates of the price elasticities of demands for services and amenities directly from the hedonic with no need for a Rosen two-step procedure, and provides tests of key hypotheses about household sorting. An application to data from Cleveland in 2000 yields precise estimates of price …