Dear Statalists,
It is Pasquale here. I would like to cross-sectionally test a linear relation between two growth rates, namely the impact of public expenditure’s growth rate (gt) on income’s growth rate (yt) by using microdata on Italian municipalities. In order to avoid any bias due to spillovers, is there any way to “recursively” regress each city’s growth rate of income on a given set of cities’ growth rates of spending?
I dealt with distance issue and I have now a continuous numerical variable which catch the contiguity among cities: for instance, the city number 5 has as “closest neighbors” the cities 2,3,4 and 6,7,8.
Any thought?
Best Regards,
Pasquale Giacobbe
It is Pasquale here. I would like to cross-sectionally test a linear relation between two growth rates, namely the impact of public expenditure’s growth rate (gt) on income’s growth rate (yt) by using microdata on Italian municipalities. In order to avoid any bias due to spillovers, is there any way to “recursively” regress each city’s growth rate of income on a given set of cities’ growth rates of spending?
I dealt with distance issue and I have now a continuous numerical variable which catch the contiguity among cities: for instance, the city number 5 has as “closest neighbors” the cities 2,3,4 and 6,7,8.
Any thought?
Best Regards,
Pasquale Giacobbe
