Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/220243 
Year of Publication: 
2015
Series/Report no.: 
Discussion Paper No. 154
Publisher: 
Institute for Applied Economic Research (ipea), Brasília
Abstract: 
We describe econometric techniques to treat spatial autocorrelation in multiequation cross-section models. The cross-section approaches discussed here are heavily based on the spatial GMM procedure, proposed by Conley (1999). An extension for fullinformation instrumental variable models is presented. Monte Carlo simulations are employed in order to verify some asymptotic properties of the Spatial GMM approach. The simulations suggest that, even in the presence of spatial nonstationarity, the spatial GMM still delivers valid standard errors. Besides, usual t-statistics appear to have a standard normal distribution. An application for estimating labor and wage equations to study regional growth and development of the Brazilian municipalities, between 1991 and 2000, is presented.
JEL: 
E24
O18
R11
R12
R58
Document Type: 
Working Paper

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