A multivariate spatial econometrics model with an intra-location feedback effect
In the spatial multivariate econometrics models, the relations are typically built for the between location dependencies, which is adopted from univariate case like SEM and SLM models. However, this does not allow for intra-location dependencies to be accounted directly. The weakness of the previous models is shown analytically and using examples. A new multivariate spatial econometric model is pr