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We investigate the common conjecture in applied econometric work that the inclusion of spatial fixed effects in a regression specification for a single cross‐sectional data set removes spatial dependence. We demonstrate analytically and by means of a series of simulation experiments how evidence of the removal of spatial autocorrelation by spatial fixed effects may be spurious when the true data generating...
AbstractIn this paper, I give a personal view on the development of the field of spatial econometrics during the past 30 years. I argue that it has moved from the margins to the mainstream of applied econometrics and social science methodology. I distinguish three broad phases in the development, which I refer to as preconditions, take off and maturity. For each of these phases I describe the main...
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