Table of Contents

Handbook of Research Methods and Applications in Economic Geography

Handbook of Research Methods and Applications in Economic Geography

Handbooks of Research Methods and Applications series

Edited by Charlie Karlsson, Martin Andersson and Therese Norman

The main purpose of this Handbook is to provide overviews and assessments of the state-of-the-art regarding research methods, approaches and applications central to economic geography. The chapters are written by distinguished researchers from a variety of scholarly traditions and with a background in different academic disciplines including economics, economic, human and cultural geography, and economic history. The resulting handbook covers a broad spectrum of methodologies and approaches applicable in analyses pertaining to the geography of economic activities and economic outcomes.

Chapter 1: Spatial econometrics

James LeSage

Subjects: economics and finance, regional economics, geography, economic geography, research methods in geography, research methods, research methods in economics, research methods in geography, urban and regional studies, regional economics, research methods in urban and regional studies


Spatial econometrics is a subset of the broader econometrics discipline that deals with modeling situations involving spatially dependent sample data. Regional scientists often work with regional data samples where each observation represents a single region and the sample observations consist of a collection of information for n different regions. A key assumption made by conventional linear regression models is that each observation is independent of other observations. Spatial regression models represent a set of methods that do not make this assumption, since it seems unrealistic to assume that economic and other types of activity taking place in one region are independent of those in neighboring regions. Replacing the assumption of independence with one of spatial dependence between regions leads to a situation where spatial spillovers can arise.