“…The introduction of the spatial weight matrix
is an explicit acknowledgement that nearby counties are structurally interdependent. Expanding commuting sheds (e.g., Kures & Deller,
2023; Rapino & Fields, 2013) and regional trade‐flows are insensitive to county political boundaries and what happens in one county will spillover and influence nearby counties. We allow for that spatial spillover or cross‐county interdependence by using a spatial Durbin specification first introduced by Anselin (
1988,
1990) and more fully developed by LeSage and Pace (
2009).…”