Review on Spatial Econometric Analysis

Due to different types of weights matrix, estimation and test, many kind of spatial econometric models are deduced especially depend on space effects and spatial correlation. The general formulation of several important spatial regression models for cross-sectional or panel data are analyzed based on adequate consideration of spatial effects and the formal expression of spatial autocorrelation. For spatial econometric model estimation, there are mainly three methods (maximum likelihood estimation, GMM estimation, and Bayesian estimation). Spatial model specification tests (such as Moran´s I test, KR test, GMM-based test, LM/RS test, Wald test and likelihood ratio test) are used for several reasons based on the estimated regression and spatial weights matrix. So, the empirical study based on spatial econometrics should consider the different types of model specification and tests, especially the objectives for your research and application.