Further Topics in Spatial Econometrics

This chapter discusses some advanced special topics in spatial econometrics that have been recently introduced in the literature. The primary purpose is to make the reader knowledgeable about a set of techniques that represent the evolution of those presented in Chapter  3 and that constitute an essential part of the skills currently required to spatial econometricians. These methods have the potential for tremendous impact in analyzing real problems in many scientific fields. In particular, the chapter presents the spatial peculiarities associated with the treatment of heteroscedastic disturbances, discrete choices, panel data, non-stationarity and prior information incorporated into a Bayesian framework. A section is also devoted to discuss the implications of treating non-deterministic weight matrices. Finally, consistently with the rest of the book, the chapter offers a detailed presentation of the computer codes in R, STATA and Python, needed for the practical implementation of all the models presented.