How Big is Your Neighbourhood? Spatial Implications of Market Participation Among Filipino Smallholders
提出估计空间外部性中邻里效应大小和范围的方法,应用于菲律宾北部小农样本,发现显著的正向邻里效应且影响半径达三个地理单元,并指出考虑空间外部性会显著改变政策建议。
Abstract We present a procedure for estimating two quantities defining the spatial externality in discrete‐choice commonly referred to as ‘the neighbourhood effect’. One quantity, the propensity for neighbours to make the same decision, reflects traditional preoccupations; the other quantity, the magnitude of the neighbourhood itself, is novel. Because both quantities have fundamental bearing on the magnitude of the spatial externality, it is desirable to have a robust algorithm for their estimation. Using recent advances in Bayesian estimation and model comparison, we devise such an algorithm and illustrate its application to a sample of northern‐Filipino smallholders. We determine that a significant, positive, neighbourhood effect exists; that, among the 12 geographical units comprising the sample, the neighbourhood spans a three‐unit radius; and that policy prescriptions are significantly altered when calculations account for the spatial externality.