Functional-Coefficient Spatial Durbin Models with Nonparametric Spatial Weights: An Application to Economic Growth
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...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2016-02-01
|
| Series: | Econometrics |
| Subjects: | |
| Online Access: | http://www.mdpi.com/2225-1146/4/1/6 |
| _version_ | 1797999881259843584 |
|---|---|
| author | Mustafa Koroglu Yiguo Sun |
| author_facet | Mustafa Koroglu Yiguo Sun |
| author_sort | Mustafa Koroglu |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-04-11T11:10:35Z |
| format | Article |
| id | doaj.art-57c804c584834d33aebc09e1edbc58ca |
| institution | Directory Open Access Journal |
| issn | 2225-1146 |
| language | English |
| last_indexed | 2024-04-11T11:10:35Z |
| publishDate | 2016-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Econometrics |
| spelling | doaj.art-57c804c584834d33aebc09e1edbc58ca2022-12-22T04:27:28ZengMDPI AGEconometrics2225-11462016-02-0141610.3390/econometrics4010006econometrics4010006Functional-Coefficient Spatial Durbin Models with Nonparametric Spatial Weights: An Application to Economic GrowthMustafa Koroglu0Yiguo Sun1Department of Economics and Finance, University of Guelph, Guelph, ON N1G2W1, CanadaDepartment of Economics and Finance, University of Guelph, Guelph, ON N1G2W1, CanadaThis 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.http://www.mdpi.com/2225-1146/4/1/6functional coefficientslocal linear regressionnonparametric 2SLS estimatorseries estimatorSolow economic growth convergence modelspatial Durbin model |
| spellingShingle | Mustafa Koroglu Yiguo Sun Functional-Coefficient Spatial Durbin Models with Nonparametric Spatial Weights: An Application to Economic Growth Econometrics functional coefficients local linear regression nonparametric 2SLS estimator series estimator Solow economic growth convergence model spatial Durbin model |
| title | Functional-Coefficient Spatial Durbin Models with Nonparametric Spatial Weights: An Application to Economic Growth |
| title_full | Functional-Coefficient Spatial Durbin Models with Nonparametric Spatial Weights: An Application to Economic Growth |
| title_fullStr | Functional-Coefficient Spatial Durbin Models with Nonparametric Spatial Weights: An Application to Economic Growth |
| title_full_unstemmed | Functional-Coefficient Spatial Durbin Models with Nonparametric Spatial Weights: An Application to Economic Growth |
| title_short | Functional-Coefficient Spatial Durbin Models with Nonparametric Spatial Weights: An Application to Economic Growth |
| title_sort | functional coefficient spatial durbin models with nonparametric spatial weights an application to economic growth |
| topic | functional coefficients local linear regression nonparametric 2SLS estimator series estimator Solow economic growth convergence model spatial Durbin model |
| url | http://www.mdpi.com/2225-1146/4/1/6 |
| work_keys_str_mv | AT mustafakoroglu functionalcoefficientspatialdurbinmodelswithnonparametricspatialweightsanapplicationtoeconomicgrowth AT yiguosun functionalcoefficientspatialdurbinmodelswithnonparametricspatialweightsanapplicationtoeconomicgrowth |