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A Passage to Spatial Econometrics (Theory & Applications)

 By Anil K. Bera, University of Illinois at Urbana-Champaign (UIUC)

 

 

Prologue

 

April 1242

Baghdad, Iraq

Baghdad took no note of the arrival of Shams (Sun) of Tabriz, a wondering Sufi

Saint, from Samarkand to the city’s famous Dervish Lodge. Shams told the master of the lodge, Baba Zaman, that he wanted to share his accumulated knowledge to the most competent student. Why? Because, Shams said, “Knowledge is like brackish water at the bottom of an old vase unless it flows somewhere.” Baba Zaman got serious and asked a bizarre question:“ You say you are ready to deliver all your knowledge to another person. You want to hold the Truth in your palm as if it were a precious pearl and offer it to someone special. That is no small task for a human being. Are not you asking too much! What are you willing to pay in return?” Raising an eyebrow, Shams of Tabriz said firmly, “I am willing to give my head.”

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Topic 1. History of Spatial Analysis (4 hours)

1.1. Spatial Analysis in Time of Cholera: Work of Dr. John Snow (1854)

1.2. Design of Experiments and Sample Survey: Work of Fisher and Mahalanobis (1920-1950).

1.3. First Formal Paper on Spatial Analysis: PAP Moran (1948)

 

Topic 2. Theory of Spatial Analysis (6 hours)

2.1. Why (Spatial) Dependence Matter?

2.2. Contrast between Time-Series and Spatial Dependence

2.3. Different Spatial Models

2.4. Estimation of Spatial Models

 

Topic 3.  Testing Spatial Models (9 hours)

3.1. General Theory of Testing (LR, W and RS/LM)

3.2. Testing Misspecified Models 

3.3. Specification Tests for Spatial Models

3.4. Spatial Panel Models

 

 

Topic 4. Applications of Spatial Analysis (Using Data from USA, China and Other Countries) (6 hours)

4.1. Applications of Spatial Analysis to Crime (Columbus, OH, USA)

4.2. Applications of Spatial Analysis House Prices (Boston, MA, USA)

4.3. Applications of Spatial Analysis to Regional Growth Convergence (of 61 countries)

 

Epilogue

In late October of 1244 in Konya, Turkey, Shams found the student he was looking for: Jalaluddin Rumi, already a famous Islamic scholar in Turkey. Under the tutelage of Shams, Rumi became one of the most revered poets in the world, as Rumi said,“ I was raw. I was cooked. I was burned.”

 

March 1248

Konya, Turkey

Rumi’s son Aladdin hired a killer who did not require much convincing.

It was a windy night, unusually chilly for this time of the year. A few nocturnal animals hoofed and howled from afar. The killer was waiting. Shams of Tabriz came out of the house holding an oil lamp in his hand and walked in the direction of the killer and stopped only a few steps away from the bush where the killer was hiding. “It is a lovely night, isn’t it?” Shams asked. Did he know the killer was there? Soon six others joined the killer. The seven of them knocked Shams to the ground, and the killer pulled his dagger out of his belt...... Together they lifted Shams’ body which was strangely light, and dumped him into

a well. Gasping loudly for air, each of them took a step back and waited to hear the sound of Shams’ body hitting the water.

It never came.

 

Taken from: Elif Shafak (2010), The Forty Rules of Love, Penguin Books.

 

 

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About me: Anil K. Bera

My family name stands for:

Business Economics Research Advisor (BERA).

However, my family history goes back to Biblical times: (Genesis 14:2) “ That

these made war with Bera king of Sodom, and with Birsha king of Gomorrah...”

Naturally, I am not at all proud of this.

I also have solid business experience - “run” an Internet Kafe in Turkey (below). I

wanted to have my email address as @nil@uiuc.edu, but unfortunately, the university didn’t allow it. I also run a hotel (below) in Ankara, capital of Turkey.

What about AB? These are first two English letters. Also think of first two

alphabets in Arabic: alif and ba There is a . (dot) below ba, which embodies the

entire universe:

Finally, the line below is from Bera’s Bible:

(Matthew 19:26):“ But Jesus beheld them, and said unto them: With professors

this is impossible, but with Students all things are possible.”

 

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