• *

    Joris Pinkse's research was in part supported by NSF grant SES-0922127. Margaret Slade's research is supported by the Social Sciences and Humanities Research Council of Canada. Joris Pinkse thanks the Human Capital Foundation for their support of CAPCP. We thank Gilles Duranton, Christian Redfearn, Giorgio Topa, and an anonymous referee for valuable comments. Joris Pinkse is an extramural fellow of Tilburg University.

  • Prepared for the 50th anniversary symposium of the Journal of Regional Science held at the New York Federal Reserve


ABSTRACT The purpose of this paper is threefold. First, we give an overview of the general direction the spatial econometrics literature has taken without attempting to provide a representative survey of all interesting work that has appeared. Second, we identify a number of problems in spatial econometrics that are as yet unresolved. Finally, we provide advocacy for the notion that new spatial econometric theory should be inspired by actual empirical applications as opposed to being directed by what appears to be the most obvious extension of what is currently available.