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A Bayesian Markov-switching SAR model for time-varying cross-price spillovers

Christian Glocker, Matteo Iacopini, Tamás Krisztin, Philipp Piribauer

arXiv 30 Oct 2023 · Statistics — Applications · 3 citations (OpenAlex)

arXiv:2310.19557 · PDF · DOI · OpenAlex · Extracted main text

Abstract

The spatial autoregressive (SAR) model is extended by introducing a Markov switching dynamics for the weight matrix and spatial autoregressive parameter. The framework enables the identification of regime-specific connectivity patterns and strengths and the study of the spatiotemporal propagation of shocks in a system with a time-varying spatial multiplier matrix. The proposed model is applied to disaggregated CPI data from 15 EU countries to examine cross-price dependencies. The analysis identifies distinct connectivity structures and spatial weights across the states, which capture shifts in consumer behaviour, with marked cross-country differences in the spillover from one price category to another.

Citation extraction

40
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54
in-text mentions
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distinct cited
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Krisztin, T. and P. Piribauer (2022) A Bayesian approach for the estimation of weight matrices in spatial autoregressive models self1.00053100%
2LeSage, J. and R. K. Pace (2009) Introduction to spatial econometrics0.92843100%
3Glocker, C. and P. Piribauer (2023) Propagation of Price Shocks to CPI Inflation: The role of Cross-Demand Dependencies self0.87452100%
4Debarsy, N. and J. P. LeSage (2022) Bayesian model averaging for spatial autoregressive models based on convex combinations of different types of connectivity matri…0.84333100%
5Piribauer, P., C. Glocker, and T. Krisztin (2023) Beyond distance: The spatial relationships of european regional economic growth self0.51121100%
6Carrière-Swallow, Y., P. Deb, D. Furceri, D. Jiménez, and J. D. Ostry (2023) Shipping costs and inflation0.40511100%
7Fortunato, S (2010) Community detection in graphs0.40511100%
8Newman, M. E. J (2010) Networks: An introduction0.40511100%
9Regmi, A. and J. L. Seale (2010) Cross-price elasticities of demand across 114 countries0.40511100%
10Allen, T. and C. Arkolakis (2023) Economic activity across space0.40511100%

Showing the top 10 of 40 scored citations.