Spatial Econometric Issues for Bio‐Economic and Land‐Use Modelling

Abstract

We survey the literature on spatial bio-economic and land-use modelling and assess its thematic development. Unobserved site-specific heterogeneity is a feature of almost all the surveyed works, and this feature, it seems, has stimulated significant methodological innovation. In an attempt to improve the suitability with which the prototype incorporates heterogeneity, we consider modelling alternatives and extensions. We discuss solutions and conjecture others. Copyright 2007 The Agricultural Economics Society.

Accounting for Spatial Effects in Economic Models of Land Use: Recent Developments and Challenges Ahead

“…Hepple (2004) provides a useful discussion of model selection when using a Bayesian approach. In addition, hierarchical models have been used to overcome a number of computational difficulties that arise when estimating discrete choice models in a Bayesian framework (Holloway et al 2007;Banerjee et al 2004).…”

“…The latter include nonparametric and semiparametric models that provide greater flexibility in modeling the spatial data structure and quasi-experimental methods that have potential to isolate causal effects from unobserved spatially correlated variables. Many of the published review articles on spatial econometrics (e.g., Anselin 2002Anselin , 2007Anselin , 2010; Arbia and Fingleton 2008;Florax and van der List 2003;Holloway et al 2007;Páez 2009) do not include any or much discussion of these other approaches. In contrast, two recently published papers in the 50 th anniversary edition of the Journal of Regional Science (McMillen 2010; Pinkse and Slade 2010) take a broader view.…”

Assessing the Geographic Representativity of Farm Accountancy Data

“…In the last decade the use of explicit geo-spatial analysis within agri-economics has grown in importance [8].…”

Bayesian Model Averaging in the Context of Spatial Hedonic Pricing: An Application to Farmland Values

“…A hedonic model of farmland prices can be used to analyze the impacts on agricultural land of urban development (Isgin and Forster, 2006) or government regulations (Petrie and Taylor, 2007). Since farmland and residential property values are highly influenced by both the physical location of properties and their location relative to each other, estimation of hedonic price models requires information that is available only from a geographical information system (GIS) (Overman, 2010) and use of spatial econometric techniques (Holloway et al, 2007).…”