A Bayesian treatment of locally linear regression methods introduced in McMillen (1996) and labeled geographically weighted regressions (GWR) in Brunsdon, Fotheringham and Charlton (1996) is set forth in this paper. GWR uses distance-decay-weighted sub-samples of the data to produce locally linear estimates for every point in space. While the use of locally linear regression represents a true c...

This paper reviews the empirical literature on growth and convergence that has addressed the importance of spatial factors. An important distinction in this literature is the one between absolute and relative location. The literature on absolute location predominantly uses non-spatial econometric techniques, and is strongly linked to the economic growth literature. In contrast, studies on relat...

In the aftermath of the recent boom and bust of US real estate, both a refinement and a deeper understanding of real estate valuation methods have become critical concerns across a number of broad urban-related academic fields. Out of this we see three major trends in the field of real estate valuation research: (1) the expansion of spatial econometrics; (2) the recognition of the differences b...

This paper uses spatial econometrics to analyze air pollution externalities. State-by-state source-receptor transfer coefficients that can be used as a basis for a location-differentiated permit system are estimated. Results affirm the importance of regional transport in determining local ozone air quality, although owing to non-monotonicities in ozone production the externality is not always n...

The concept of social interactions in economics allows economists to explore applications that are as rich as the social fabric. It also introduces numerous definitional, econometric and measurement issues. The paper aims at introducing the classes of models that accommodate estimation of social interactions and at examining the key areas where significant advances have been made in the identif...