A Bayesian probit model with individual effects that exhibit spatial dependencies is set forth. Since probit models are often used to explain variation in individual choices, these models may well exhibit spatial interaction effects due to the varying spatial location of the decision makers. That is, individuals located at similar points in space may tend… (More)
In this paper it is shown that for both spatial lag and spatial autoregressive models with strongly connected weight matrices, maximum likelihood estimates of the spatial dependence parameter are necessarily biased downward. In addition, it is shown that same bias is present in general Moran tests of spatial dependency, so that positive dependencies will… (More)
In this paper, we propose a statistical index of industrial localization based on Kullback-Leibler divergence. This index is particularly well suited to cases where industrial data is only available at the regional level. Unlike existing regional-level indices, our index can be employed to test the significance of industrial localization relative to a… (More)
This appendix contains all the proofs of the main article (Smith and Zenou (2002)).
Several large US cities, including Chicago, Los Angeles, New York, and Philadelphia, have developed information systems to distribute property-level housing data to community organizations and municipal agencies. These early warning systems are also intended to predict which properties are at greatest risk of abandonment, but they have rarely used… (More)
This paper studies the spatial relationship between traditional banking services (Banks) and alternative financial service providers (AFSPs). The main objective is to test the so-called spatial void hypothesis that AFSPs tend to locate in markets where traditional banking services are under-provided. The key question of interest here is whether or not AFSPs… (More)
This Discussion Paper is issued under the auspices of the Centre's research programme in LABOUR ECONOMICS. Any opinions expressed here are those of the author(s) and not those of the Centre for Economic Policy Research. Research disseminated by CEPR may include views on policy, but the Centre itself takes no institutional policy positions. The Centre for… (More)