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Abstract
This paper reviews a number of conceptual issues pertaining to the implementation of an explicit "spatial" perspective in
applied econometrics. It provides an overview of the motivation for including spatial effects in regression models, both from a
theory-driven as well as from a data-driven perspective. Considerable attention is paid to the inferential framework necessary
to carry out estimation and testing and the different assumptions, constraints and implications embedded in the various
specifications available in the literature. The review combines insights from the traditional spatial econometrics literature as
well as from geostatistics, biostatistics and medical image analysis.
© 2002 Elsevier Science B.V. All rights reserved.