1 Econometrics for Spatial Models: Recent Advances.- I. Specification, Testing and Estimation.- 2 The Performance of Diagnostic Tests for Spatial Dependence in Linear Regression Models: A Meta-Analysis of Simulation Studies.- 3 Moran-Flavored Tests with Nuisance Parameters: Examples.- 4 The Influence of Spatially Correlated Heteroskedasticity on Tests for Spatial Correlation.- 5 A Taxonomy of Spatial Econometric Models for Simultaneous Equations Systems.- 6 Exploring Spatial Data Analysis Techniques Using R: The Case of Observations with No Neighbors.- II. Discrete Choice and Bayesian Approaches.- 7 Techniques for Estimating Spatially Dependent Discrete Choice Models.- 8 Probit in a Spatial Context: A Monte Carlo Analysis.- 9 Simultaneous Spatial and Functional Form Transformations.- 10 Locally Weighted Maximum Likelihood Estimation: Monte Carlo Evidence and an Application.- 11 A Family of Geographically Weighted Regression Models.- III. Spatial Externalities.- 12 Hedonic Price Functions and Spatial Dependence: Implications for the Demand for Urban Air Quality.- 13 Prediction in the Panel Data Model with Spatial Correlation.- 14 External Effects and Cost of Production.- IV. Urban Growth and Agglomeration Economies.- 15 Identifying Urban-Rural Linkages: Tests for Spatial Effects in the Carlino-Mills Model.- 16 Economic Geography and the Spatial Evolution of Wages in the United States.- 17 Endogenous Spatial Externalities: Empirical Evidence and Implications for the Evolution of Exurban Residential Land Use Patterns.- V. Trade and Economic Growth.- 18 Does Trade Liberalization Cause a Race-to-the-Bottom in Environmental Policies? A Spatial Econometric Analysis.- 19 Regional Economic Growth and Convergence: Insights from a Spatial Econometric Perspective.- 20 Growth and Externalities Across Economies: An Empirical Analysis Using Spatial Econometrics.- References.- Author Index.- List of Contributors.

The volume on New Directions in Spatial Econometrics appeared in 1995 as one of the first in the then new Springer series on Advances in Spatial Sciences. It very quickly became evident that the book satisfied a pent up demand for a collection of advanced papers dealing with the methodology and application of spatial economet­ rics. This emerging subfield of applied econometrics focuses on the incorporation of location and spatial interaction in the specification, estimation and diagnostic testing of regression models. The current effort is a follow up to the New Directions volume. Even though the number of empirical and theoretical journal articles dealing with various as­ pects of spatial econometrics has grown tremendously in the recent past, the need remained to bring together an advanced collection on methodology, tools and appli­ cations. This volume contains several papers that were presented at special sessions on spatial econometrics organized as part of a number of conferences of the Re­ gional Science Association International. In addition, a few papers were invited for submission. All papers were refereed. The focus in the volume reflects the advances made in the field in recent years.