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The purpose of this paper is threefold. First, we give an overview of the general direction the spatial econometrics literature has taken without attempting to provide a representative survey of all interesting work that has appeared. Second, we identify a number of problems in spatial econometrics that are as yet unresolved. Finally, we provide advocacy for the notion that new spatial econometric theory should be inspired by actual empirical applications as opposed to being directed by what appears to be the most obvious extension of what is currently available.

Document Type: Research Article


Affiliations: 1: Center for the Study of Auctions, Procurements, and Competition Policy (CAPCP), Department of Economics, The Pennsylvania State University, 608 Kern Graduate Building, University Park 16802., Email: 2: Department of Economics, The University of British Columbia 997-1873 East Mall, Vancouver, BC V6T1Z1, Canada., Email:

Publication date: February 1, 2010

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