Space Is More than Geography: Using Spatial Econometrics in the Study of Political Economy

Abstract

for helpful discussions and comments, James LeSage for making available his MATLAB spatial econometrics library and answering our questions, and Michael Ward for impressing us on the importance of space. This research was supported by a grant from the National Science Foundation (SES-0214027). AbstractWhile spatial econometrics is being used more frequently in political science, most applications are still based on geographic notions of distance. Here we argue that it is often more fruitful to consider political economy notions of distance, such as relative trade. We also argue that the spatially autoregressive model usually (but not always) should be preferred to the spatially lagged error model. Finally, we consider the role of spatial econometrics in analyzing time-series-cross-section data, and show that a plausible (and testable) assumption allows for the simple introduction of space (however defined) into such analyses. Examples of spatial analyses involving trade and democracy are presented.

Fostering Environment Efficiency through Transnational Linkages? Trajectories of CO2 and SO2, 1980–2000

“…see Perkins and Neumayer (2004), Simmons and Elkins (2004) and Beck et al (2006)). In the present paper, the pollutionefficiencies of countries are linked with each other -in effect, allowing environment-efficiency in one country to spillover into another one -via a transformation mechanism represented by a connectivity matrix.…”

“…In essence, our measures comprise a spatial lag or spatial autoregressive model, which has recently become popular among social scientists in investigating the international diffusion of 4 The lagged foreign emissions-efficiency is used because estimating a model using its contemporaneous value renders model estimation extremely difficult, given that countries would affect and be affected by other countries' emissions-efficiency simultaneously (Beck et al 2006). Even conceptually, it makes more sense to use the lag because machinery and manufacturing imports are likely to embody lagged rather than contemporaneous emissionsefficiency of the exporting country.…”

Social Capital and Economic Well-Being in Germany's Regions: An Exploratory Spatial Analysis

“…Researchers can choose between geographical distance and substantive specification to model interdependence. Beck et al (2006) argued that considering substantive information, such as trading partners in the analysis of the distribution of economy or use multiple spatial matrices in one analysis, might be useful as well (e.g. Hays et al 2010).…”

Uma abordagem territorial e político-institucional da política de saneamento do Brasil, no eixo do abastecimento de água

“…Estes modelos têm suas origens nos estudos de geografia, onde a noção de distância é fundamental. Esses modelos foram concebidos utilizando a distância como a principal fonte de especificação da dependência na variável explicada (Beck et al, 2006). Mas a distância não é a única forma de mensuração da dependência entre as unidades observadas.…”

“…Quando se utiliza um modelo de regressão linear padrão, ou seja, não espacial, o modelo não é capaz de captar essa dependência e termina por violar as suposições de interdependência dos erros necessários à sua construção (Beck et al, 2006). O que significa dizer que, quando se adota um modelo de regressão sem incorporar a dependência espacial presente nas observações, o esforço resultará em estimativas enviesadas.…”