Beyond Parametric Bounds: Exploring Regional Unemployment Patterns Using Semiparametric Spatial Autoregression

Abstract

It is a well-known phenomenon that nonlinearities that are inherent in the relationship among economic variables negatively affect the commonly used estimators in the econometric models. The nonlinearities cause an instability of the estimated parameters that, in particular, are unable to capture a local relationship between the response and the covariate.

Keywords

• regional unemployment
• linear regression
• semiparametric model
• generalised additive model
• spline regression
• spatial autoregressive semiparametric model
• c14
• c21
• c52