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Original Articles

On the property of diffusion in the spatial error model

, , &
Pages 533-536 | Published online: 16 Aug 2006
 

Abstract

The aim of this paper is to illustrate the property of global spillover effects in the first-order spatial autoregressive error model and the associated diffusion process of spatial shocks. An application is provided on a sample of 145 regions over 1989–1999 and highlights the most influential regions.

Notes

The data on per capita GDP are extracted from the EUROSTAT-REGIO databank.

The core regime is composed of 100 regions and the periphery regime of 45 regions. These regimes have been detected using Getis–Ord statistics (Ord and Getis, Citation1995) on y 0.

The factor of proportionality is set to twice the average of residual standard errors of each regime in the estimated spatial error model (Equation 9).

Similar maps can be constructed for each row of matrix V to evaluate the emission properties of each region (Le Gallo et al., Citation2003).

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