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Estimation and inference of a partially linear panel threshold spatial model with individual fixed effects

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  • Xishu Zhang
  • Xuanhui Wang
  • Azhong Ye

Abstract

We extend the panel threshold spatial model with individual fixed effects to the case where the model allows partial linearity. Local polynomial spatial two-stage least squares estimation (LPS2SLS) is proposed to obtain estimators of the model, and a test method for inferring the spatial threshold is suggested. The simulation studies demonstrate an acceptable finite sample performance of the estimator and an effective threshold inference.

Suggested Citation

  • Xishu Zhang & Xuanhui Wang & Azhong Ye, 2024. "Estimation and inference of a partially linear panel threshold spatial model with individual fixed effects," Applied Economics Letters, Taylor & Francis Journals, vol. 31(21), pages 2271-2276, December.
    • Handle: RePEc:taf:apeclt:v:31:y:2024:i:21:p:2271-2276
    DOI: 10.1080/13504851.2023.2219885
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