Next Article in Journal
Multiple Discrete Endogenous Variables in Weakly-Separable Triangular Models
Next Article in Special Issue
Bayesian Bandwidth Selection for a Nonparametric Regression Model with Mixed Types of Regressors
Previous Article in Journal
Acknowledgement to Reviewers of Econometrics in 2015
Previous Article in Special Issue
Forecast Combination under Heavy-Tailed Errors
Article Menu

Export Article

Open AccessArticle
Econometrics 2016, 4(1), 6; doi:10.3390/econometrics4010006

Functional-Coefficient Spatial Durbin Models with Nonparametric Spatial Weights: An Application to Economic Growth

1
Department of Economics and Finance, University of Guelph, Guelph, ON N1G2W1, Canada
2
Department of Economics, Süleyman Şah University, Istanbul 34956, Turkey
*
Author to whom correspondence should be addressed.
Academic Editor: Isabel Casas
Received: 6 November 2015 / Revised: 11 January 2016 / Accepted: 19 January 2016 / Published: 3 February 2016
(This article belongs to the Special Issue Nonparametric Methods in Econometrics)
View Full-Text   |   Download PDF [464 KB, uploaded 3 February 2016]   |  

Abstract

This paper considers a functional-coefficient spatial Durbin model with nonparametric spatial weights. Applying the series approximation method, we estimate the unknown functional coefficients and spatial weighting functions via a nonparametric two-stage least squares (or 2SLS) estimation method. To further improve estimation accuracy, we also construct a second-step estimator of the unknown functional coefficients by a local linear regression approach. Some Monte Carlo simulation results are reported to assess the finite sample performance of our proposed estimators. We then apply the proposed model to re-examine national economic growth by augmenting the conventional Solow economic growth convergence model with unknown spatial interactive structures of the national economy, as well as country-specific Solow parameters, where the spatial weighting functions and Solow parameters are allowed to be a function of geographical distance and the countries’ openness to trade, respectively. View Full-Text
Keywords: functional coefficients; local linear regression; nonparametric 2SLS estimator; series estimator; Solow economic growth convergence model; spatial Durbin model functional coefficients; local linear regression; nonparametric 2SLS estimator; series estimator; Solow economic growth convergence model; spatial Durbin model
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Koroglu, M.; Sun, Y. Functional-Coefficient Spatial Durbin Models with Nonparametric Spatial Weights: An Application to Economic Growth. Econometrics 2016, 4, 6.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Econometrics EISSN 2225-1146 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top