We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is Spatial Econometrics?

By Steven Symes
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Spatial econometrics is a cross-disciplinary field of study that crosses into statistics, economics, regional science and econometrics. The field originally evolved out of econometrics, which mixes statistics and math with economics. The spatial aspect of econometrics leads to a study of how spatial relationships, or geography, affects the study of analysis of statistical data, providing a geographically centered interpretation of a set of data.

Regression analysis is used by practitioners of spatial econometrics, who use such an approach for building statistical models and tests. With regression analysis, researchers look at one dependent variable, and one or more independent variables. When the value of the dependent variable changes, researchers try to predict how the change will affect the values of the independent variables. These variables involve spatial relationships, such as what part of a city different people included in a statistical model call home, or how the proximity of certain geographical features affect the prices of homes in different parts of a country.

Those who use spatial econometrics to study relationships between various variables do so in a way that is different from spatial statistics. Instead of focusing just on the relationships between the data collected by researchers, researchers concentrate on a theoretical model to understand how changes in data through regression analysis are affected by geography. This focus on theoretical models also determines what variables in a set of data interest someone using spatial econometrics. The limits of a theoretical model are estimated by researchers using regression analysis.

The ultimate goal of spatial econometrics is to not only understand what has occurred, but to also make educated predictions about future events. Researchers concentrate on how spatial relationships between these variables affect the ultimate outcomes of various events. Using the outcomes of such predictions, various organizations can prepare more fully for what would otherwise be unpredictable spatially-driven events.

The application of spatial econometrics crosses into a wide variety of fields. House appraisers, real estate investors and other professions that need to measure and predict pricing trends in real estate depend on spatial econometrics. Political scientists use data to study the effect of the neighborhood a person lives in and how that person votes in elections. Public health administrators use the demographic data gathered by spatial econometrists to understand better how disease is spread throughout a population. Criminologists might use similar information to study factors that contribute to specific types of criminal activity in different geographical areas.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.