How to Interpret the Coefficients of Spatial Models: Spillovers, Direct and Indirect Effects

This paper briefly reviews how to derive and interpret coefficients of spatial regression models, including topics of direct and indirect (spatial spillover) effects. These topics have been addressed in the spatial econometric literature over the past 5–6 years, but often at a level sometimes diffic...

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Bibliographic Details
Published in:Spatial demography 2016-10, Vol.4 (3), p.175-205
Main Authors: Golgher, André Braz, Voss, Paul R.
Format: Article
Language:English
Subjects:
Datasets
Demography
Econometrics
Geographical Information Systems/Cartography
Humanities
Law
Regression models
Social Sciences
Statistics for Social Sciences
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Summary:This paper briefly reviews how to derive and interpret coefficients of spatial regression models, including topics of direct and indirect (spatial spillover) effects. These topics have been addressed in the spatial econometric literature over the past 5–6 years, but often at a level sometimes difficult for students new to the field. Our goal is to overcome this handicap by carefully presenting the mathematics behind these spatial effects and clearly illustrating how they work using two small fictive datasets and one large dataset with real data. The motivation for the paper is primarily pedagogical. Theoretical and conceptual impediments associated with the application of procedures are discussed.
ISSN:2364-2289
2164-7070
DOI:10.1007/s40980-015-0016-y