Transitions at Different Moments in Time: A Spatial Probit Approach

J. Paul Elhorst*, Pim Heijnen, Anna Samarina, Jan P. A. M. Jacobs

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

11 Citations (Scopus)
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This paper adopts a spatial probit approach to explain interaction effects among cross-sectional units when the dependent variable takes the form of a binary response variable and transitions from state 0 to 1 occur at different moments in time. The model has two spatially lagged variables: one for units that are still in state 0 and one for units that had already transferred to state 1. The parameters are estimated on observations for those units that are still in state 0 at the start of the different time periods, whereas observations on units after they transferred to state 1 are discarded, just as in the literature on duration modeling. Furthermore, neighboring units that had not yet transferred may have a different impact from units that had already transferred. We illustrate our approach with an empirical study of the adoption of inflation targeting for a sample of 58 countries over the period 1985-2008. Copyright (C) 2016 John Wiley & Sons, Ltd.

Original languageEnglish
Pages (from-to)422-439
Number of pages18
JournalJournal of Applied Econometrics
Issue number2
Publication statusPublished - Mar-2017



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