Introduction to Spatial Econometrics

! This textbook is a good resource for advanced undergraduate and graduate courses, and it provides a useful tool for empirical researchers who are interested in the application of spatial models. ! [It] provides readers with a summary of some recent developments in spatial econometric models, especially with respect to the Bayesian approach. In addition, the book provides several chapters that are not treated formally in other similar textbooks, such as spatiotemporal models, matrix exponential spatial models, and limited dependent variable spatial models. With the empirical illustrations and MATLAB toolbox provided online, the book has a good balance of theoretical and empirical treatment of spatial models, and thus is a valuable reference for students and researchers who are interested in theoretical specifications and empirical applications of spatial models. ! [it] fills some gaps in recent developments in spatial econometrics and updates some materials in the textbook of Anselin (1988). ! --Lung-Fei Lee and Jihai Yu, Geographical Analysis 42 (2010) ! a landmark in raising the bar in the field of applied spatial econometrics. ! the state of the art of applied spatial econometrics has taken a step change with the publication of LeSage and Pace's book. One can no longer restrict oneself to the spatial lag and/or the spatial error model, or to simply interpreting their point estimates and testing whether these point estimates are robust to different specifications of the spatial weights matrix. ! --Spatial Economic Analysis, Vol. 5, No. 1, March 2010 !the authors provide the right balance of theoretical detail and applied illustrations of the methods discussed. !The field is rapidly evolving and much of the material reflects recent ideas that have not appeared elsewhere. The text would be suitable for either an advanced undergraduate or a postgraduate course in spatial econometric modelling. ! For those interested in implementing the methods and with knowledge of MATLAB, there is publicly available code which the authors refer to. The authors' topic is an exciting area of statistics which will clearly evolve further and develop in the coming years. For these reasons alone, the text deserves wider exposure and the effort that will need to be invested in order to fully understand the material presented should be well rewarded. --International Statistical Review, 2009 The research community needs a text like this ! The LeSage and Pace text will become a standard reference in the field and will find a welcome home on the shelf of every empirical researcher interested in spatial econometric techniques. --Donald Lacombe, Ohio University, Athens, USA If you have any interest in using spatial econometrics, you must pick up a copy of the new text Introduction to Spatial Econometrics by James LeSage and R. Kelley Pace. It is extremely well written for an econometrics textbook, as it is very clear and very concise. ! I give this textbook my highest recommendation. --Justin M. Ross, Indiana University, Bloomington, USA