New Bayesian approach simplifies selection of spatial econometric panel models
The article discusses how using a Bayesian approach can simplify the process of choosing the right model for analyzing static panel data in spatial econometrics. By focusing on just two model specifications - one with global spatial effects and one with local spatial effects - researchers can make the task much easier. This means that practitioners can decide between these two models without having to consider numerous other options, making their work more efficient and straightforward.