Affiliations: [a] Department of Statistics and Institute of Statistical Information, Inje University, Gyeongsangnamdo, Korea | [b] Department of Software Science, Dankook University, Gyeonggido, Korea | [c] Incheon Metropolitan City Development Corporation 42, Incheon, Korea | [d] School of Urban Planning and Real Estate Studies, Dankook University, Gyeonggido, Korea | [e] Department of Applied Statistics, Dankook University, Gyeonggido, Korea
Correspondence:
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Corresponding author: Chanha Hwang, Department of Applied Statistics, Dankook University, Gyeonggido, Korea. %****␣mas-15-mas200491_temp.tex␣Line␣25␣**** Tel.: +82 31 8005 3446; Fax: +82 31 8021 7204; E-mail: [email protected].
Abstract: Spatial panel data model captures spatial interactions across spatial units and over time. Lots of effort have been devoted to develop effective estimation methods for parametric and nonparametric spatial panel data models. Varying coefficient model has received a great deal of attention as an important tool for modeling panel data. In this paper we propose a kernel-based spatial error model for the purpose of analyzing spatial panel data. This model is based on the idea of fixed effect time-varying coefficient model and the kernel technique of support vector machine along with the technique of regularization. A generalized cross validation method is also considered for choosing the hyperparameters which affect the performance of the proposed model. The proposed model is evaluated through numerical studies.
Keywords: Fixed effect, generalized cross validation, kernel technique, model selection, spatial error model, spatial panel data, time-varying coefficient model
