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Spatial Approaches to Panel Data in Agricultural Economics: A Climate Change Application

Published online by Cambridge University Press:  26 January 2015

Kathy Baylis ,
Nicholas D. Paulson  and
Gianfranco Piras
Kathy Baylis
Affiliation:
Department of Agricultural and Consumer Economics, University of Illinois, Urbana-Champaign, Illinois
Nicholas D. Paulson
Affiliation:
Department of Agricultural and Consumer Economics, University of Illinois, Urbana-Champaign, Illinois
Gianfranco Piras
Affiliation:
Regional Research Institute, University of West Virginia, Morgantown, West Virginia
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Abstract

Panel data are used in almost all subfields of the agricultural economics profession. Furthermore, many research areas have an important spatial dimension. This article discusses some of the recent contributions made in the evolving theoretical and empirical literature on spatial econometric methods for panel data. We then illustrate some of these tools within a climate change application using a hedonic model of farmland values and panel data. Estimates for the model are provided across a range of nonspatial and spatial estimators, including spatial error and spatial lag models with fixed and random effects extensions. Given the importance of location and extensive use of panel data in many subfields of agricultural economics, these recently developed spatial panel methods hold great potential for applied researchers.

Keywords

climate changepanel dataspatial econometricsC33Q10Q54
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 43 , Issue 3 , August 2011 , pp. 325 - 338
Copyright
Copyright © Southern Agricultural Economics Association 2011

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