The dynamic general nesting spatial econometric model for spatial panels with common factors: Further raising the bar

The dynamic general nesting spatial econometric model for panels with common factors is the most advanced currently available. It accounts local dependence by means of an endogenous lag, exogenous lags, and a lag in error term. effects dependent variable lagged time, both space time. Finally, it global cross-sectional averages or principal components heterogeneous coefficients, which generalizes traditional controls time-invariant spatial-invariant variables unit-specific time-specific effects. This paper provides overview main arguments favor each these components, as well some potential pitfalls.