Unlocking the Power of Spatial Data for Better Economic Predictions
The article gives an easy-to-understand overview of spatial econometrics. It explains why special statistical methods are needed for analyzing spatial data and discusses three important techniques for creating models with this type of data. These techniques include creating a matrix based on distances between data points, detecting spatial patterns, and understanding spatial autoregressive models. The goal is to provide a simple introduction to spatial econometrics for people with a background in statistics or econometrics.