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Transitions at different moments in time: a spatial probit approach
journal contribution
posted on 2023-05-18, 17:20 authored by Elhorst, JP, Heijnen, P, Samarina, A, Jacobs, JPAMThis paper adopts a spatial probit approach to explain interaction effects among cross-sectional units when the dependent variable takes the form of a binary response variable and transitions from state 0 to 1 occur at different moments in time. The model has two spatially lagged variables: one for units that are still in state 0 and one for units that had already transferred to state 1. The parameters are estimated on observations for those units that are still in state 0 at the start of the different time periods, whereas observations on units after they transferred to state 1 are discarded, just as in the literature on duration modeling. Furthermore, neighboring units that had not yet transferred may have a different impact from units that had already transferred. We illustrate our approach with an empirical study of the adoption of inflation targeting for a sample of 58 countries over the period 1985–2008. Copyright © 2016 John Wiley & Sons, Ltd
History
Publication title
Journal of Applied EconometricsVolume
32Pagination
422-439ISSN
0883-7252Department/School
TSBEPublisher
John Wiley & Sons LtdPlace of publication
United KingdomRights statement
Copyright 2016 John Wiley & Sons, Ltd.Repository Status
- Restricted