Econometrics

xsmle allows for a wide set of fixed- and random-effects spatial models for balanced panel data. Unbalanced panels can be handled using its full compatibility with the mi suite of commands. Spatial weight matrices can be Stata matrices and spmat objects

We partition the standard contiguity matrix in two matrices (within and between), disentangling the overall spatial effect and deriving testable implications. In the application we study expenditures from the Italian Local Health Authority using spatial panel