Prospects and frontiers of multidimensional panel spatial autoregressive models
Prospects and frontiers of multidimensional panel spatial autoregressive models

Summary/Abstract: This paper considers some innovative techniques which allow for the investigation of certain issues concerning regional development in the EU. Namely for accessing the space-time process we suggest a Multidimensional Panel Spatial Autoregressive Model – MPSAR. It is assumed that the multidimensional perspective allows for a better description of the spatial dependence structure, especially in the context of regional science. The paper discusses the advantages and limitations of the presented approach. We point out that the failure to recognise these multidimensional effects may lead to an incorrect inference and therefore to biased conclusions. Therefore this approach constitutes an innovation in the spatial econometric studies providing additional information, and hence a deeper analysis of the investigated problem.

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