GM estimation of a Cli and Ord panel data model with random eects

The present paper suggests an estimation procedure for a Cli and Ord type spatial panel data model with random eects. Building on existing literature, the paper suggests an estimation procedure that i) considers all the moment conditions in Kapoor et al. (2007) and ii) allows for the presence of explanatory variables that do not vary over time. Our Monte Carlo results demonstrate that the estimation procedure proposed in this paper is very eective.

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