MAPS OF CONTINUOUS SPATIAL DEPENDENCE

Heterogeneity is one of the distinguishing features in spatial econometric models. It is a frequent problem in applied work and can be very damaging for statistical inference. In this paper, we focus on the problems implied by the existence of instabilities in the mechanism of spatial dependence in a spatial lag model, assuming that the other terms of the specification remain stable. We begin the discussion with the role played by the algorithms of local estimation in detecting the instabilities. Problems appear when one must decide what to do once the existence of heterogeneity has been confirmed. The logical reaction is trying to parameterize this lack of stability. However, the solution is not obvious. Assuming that a set of indicators related to the problem has been identified, we propose a simple technique to deal with the unknown functional form. In the final part of the paper, we present some Monte Carlo evidence and an application to evaluate the instability in the mechanisms of spatial dependence in the convergence process of the European Regions.DEPENDENCE, LOCAL ESTIMATION, MONTE-CARLO, SPATIAL INSTABILITY

GEOGRAPHICAL LABOUR MOBILITY IN SPAIN - A PANEL DATA APPROACH

In this paper, we study geographical labour mobility taken by workers in Spain from a regional standpoint. Using a panel data set referred to the evolution of these decisions in the 1990-2003 period, the main objective is to determine what are the main variables that influence in labour mobility as well as to quantify their impact. To this respect, regional labour market status, spatial variations in employment opportunities and house prices have turned to be the main determinants. Furthermore, also certain socio-demographic characteristic of workers such as education, marital status and the presence of children in the household are also of great relevant.

Spanish Consumers' Attitudes and Acceptability towards GM Food Products

The objective of this paper is to analyse consumers’ attitudes and acceptability of GM food products in Spain. From the methodological point of view, a three-equation model of consumer behaviour is estimated assuming a kind of causal chain among the degree of knowledge, attitudes and buying intentions. Explanatory variables include socioeconomic characteristics of respondents as well as endogenous variables of the previous equations. The model provides a better knowledge of how attitudes and buying intentions towards GM food are formed. Higher educated consumers, more concerned about labelling information and less about price, and regular buyers of organic foods show a higher (not necessarily better) knowledge on GM technology and its consequences. However, those consumers with a lower level of knowledge, together with those who are not concerned about safety, are not used to recycle but to purchase fast food generate more positive attitudes towards GMs, which finally determine future purchasing intention.GM foods, Spain, consumers' attitudes, econometric model,

Consequences of BSE on Consumers' Attitudes, Perceptions and Willingness to Pay for Certified Beef in Spain

The BSE crisis has increased consumers' concerns on beef safety. Product quality systems and controls have been reinforced. Traceability certification and quality labels have been developed to communicate consumers the safety characteristics of the labelled beef and recover consumption. As a consequence, production costs have increased, which have been ultimately transmitted to consumer prices. The objective of this paper is to develop a conceptual model able to analyse main factors influencing consumers' willingness-to-pay for certified beef. A three-equation recursive model is jointly estimated. Results indicate that income, level of beef consumption, the average price consumers paid for beef and beef safety perception are main determinants of Spanish consumers' willingness- to-pay for certified beef.Certified beef, willingness-to-pay, attitudes, food safety, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

Vuong and Wald tests. Simplicity vs. Complexity

The specification of cross-sectional models is usually solved following a traditional procedure, highly supported by practitioners. In the first step, a simple model is proposed that will be subsequently improved with different elements if the evidence so advises. This procedure expedites the econometric solution and fits well into the Lagrange Multiplier approach, which contributes to explain its current popularity. However, there are other methods that could also be used, and some of them are considered in this paper. Specifically, we turn our attention to the Vuong test, developed in the context of the Kullback-Leibler information measure. This test represents an intermediate solution between the complexity inherent in the Wald test and the simplicity of the Lagrange Multiplier principle.

Spanish Demand for Food Away From Home: A Panel Data Approach

In this paper, the Spanish demand for food away from home is analysed. A panel data set is built and appropriate techniques for estimating limited dependent variable models have been applied. Results indicate that where there are zero expenditures, these are largely due to infrequency of purchase rather than to abstention or to economic reasons. Furthermore, important differences appear among households. On the one hand, those households whose head is a highly-educated person, male, young and living on a salary in a large town are more likely to purchase food away from home. On the other hand, increases in income only provokes more than proportional increases in expenditure for those households headed by an unschooled person, a female or a person older than 55 and also for those households with more than half of its members older than 60 years.Demand for food away from home, household production theory, panel data., Consumer/Household Economics, C23, C24, D12,

NUTRIENT EFFECTS ON CONSUMER DEMAND: A PANEL DATA APPROACH

The objective of this paper is to analyze the Spanish demand for food taking into account the consumer's concern about the relationship between food diet and health. This concern is forcing food demand analysts to assume that consumer utility is a function of nutrients instead of simply the food products themselves. A CBS demand model has been considered to model the new demand function obtained, which is estimated with a complete panel data set. Ten broad categories, nine nutrients and the most relevant socio-economic variables have been considered. Finally, after an appropriate model selection strategy, expenditure, price and nutrient elasticities, as well as main sociodemographic effects, have been calculated.Nutrients, demand for food, CBS, panel data, Spain., Demand and Price Analysis, Food Consumption/Nutrition/Food Safety,

The Impact of Price Intervention Policies to Improve Dietary Quality in Spain

Many commentators have claimed that farm subsidies have contributed significantly to the “obesity epidemic” by making fattening foods relatively cheap and abundant and, symmetrically, that taxing “unhealthy” commodities or subsidizing “healthy” commodities would contribute to reducing obesity rates. This paper makes three contributions. First, we review evidence from the literature on the impacts on food consumption and obesity resulting from subsidies applied in the past to production or consumption of farm commodities. Second, we develop and present new arguments and preliminary evidence on the impacts of past government investments in agricultural R&D on food consumption and obesity—through research-induced increases in agricultural productivity and the consequences for prices, production, and consumption of farm commodities. Third, we consider and compare the economic efficiency of hypothetical agricultural research policies (changing the orientation of agricultural research investments) versus hypothetical agricultural commodity subsidies and taxes as alternative mechanisms for encouraging consumption of healthy food or discouraging consumption of unhealthy food, or both.Spain, taxes, Food demand, Dietary quality, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy,

A closer look at the Spatial Durbin Model

The spatial Durbin model occupies an interesting position in Spatial Econometrics. It is the reduced form of a model with cross-sectional dependence in the errors, but it may be used, also, as the nesting model in a more general approach of model selection. In the first case, that is the equation where we solve the Likelihood Ratio test of Common Factors. The objective in this case is to discriminate between substantive and residual dependence in a misspecified equation. Its role, when discussing the specification of the model, is also of great value as a way to access either to a static model, to a dynamic model or to a model with residual dependence. Our paper tries to go further into the interpretation of this intermediate equation in both aspects. We include a small Monte Carlo study related to the LR tests and present some new results that expedites the use, and the interpretation, of the Durbin equation in the more general process of econometric model selection in a spatial context

Vuong and Wald tests. Simplicity vs. Complexity

The specification of cross-sectional models is usually solved following a traditional procedure, highly supported by practitioners. In the first step, a simple model is proposed that will be subsequently improved with different elements if the evidence so advises. This procedure expedites the econometric solution and fits well into the Lagrange Multiplier approach, which contributes to explain its current popularity. However, there are other methods that could also be used, and some of them are considered in this paper. Specifically, we turn our attention to the Vuong test, developed in the context of the Kullback-Leibler information measure. This test represents an intermediate solution between the complexity inherent in the Wald test and the simplicity of the Lagrange Multiplier principle