Research

The SHAC estimator in panel data with group-specific spatial lags

An adaptation of the spatial heteroskedasticity autocorrelation consistent
(SHAC) estimator from the context of a single cross section to a panel data environment
is presented. The spatial model involved with the SHAC estimator is generalized to
allow spatial lag parameters and spatial weights to vary across groups of cross section
members. A model of earnings growth in the 48 contiguous states of the U.S. grouped
into eight subnational regions, is used as an illustration. The traditional production
inputs of labor, physical capital, and human capital are significant determinants of
earnings growth. Significant differences between the spatial lag parameters of subnational
regions are found.

Publication Information
Article Title: The SHAC estimator in panel data with group-specific spatial lags
Journal: Letters in Spatial and Resource Sciences (Jul, 2014)
7/1864-4031
Author(s): Schmidt, James R;  Tran, Hoa Phu D.
Researcher Information
    
Schmidt, James R
Schmidt, James R
James W. & Helen A. Hanson College Professor of Economics
Expertise:
  • Econometrics
  • Business Statistics
Economics
CoB 525 H
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-2315
Fax: (402) 472-9700
jschmidt2@unl.edu