Spatial Regression (SAR, SEM, SDM)

Which European regions actually influence each other? Instead of assuming that only bordering regions matter, we let growth data for 90 European regions from 2001 to 2019 reveal who the real neighbors are. This R tutorial comes with an interactive app that runs in your web browser.

When a state raises cigarette prices, do smokers simply buy in the state next door? Using cigarette demand in 46 American states from 1963 to 1992, we measure how prices and income affect smoking at home and in neighboring states, and how habits carry over from year to year. This R tutorial comes with an interactive app that runs in your web browser.

How does credit risk spread across banks? Using quarterly data on 350 American banks from 2006 to 2014 in Stata, we model bad loans that spill over between similar banks, persist over time and respond to shared economic shocks, and show that ignoring those shocks gives misleading answers. It comes with an interactive app that runs in your web browser.

Does crime spill over from one neighborhood to the next? Using data on 49 neighborhoods in Columbus, Ohio, in Stata, we compare models in which crime, income and housing values in nearby areas also matter, and find that higher income lowers crime both in a neighborhood and next door. It comes with an interactive app that runs in your web browser.

Do cigarette prices in one state change how much people smoke in neighboring states? Using data on 46 American states from 1963 to 1992 in Stata, we model cross-border shopping and smoking habits, and find that ignoring neighbors understates how much prices matter. It comes with an interactive app that runs in your web browser.