The Value of Good Neighbors: A Spatial Analysis of the California and Washington Wine Industries

Selected Paper prepared for presentation at the Agricultural & Applied Economics Association 2010 AAEA,CAES, & WAEA Joint Annual Meeting, Denver, Colorado, July 25-27, 2010

Nan Yang, Jill J. McCluskey, and Michael Brady

“The fact that wineries tend to cluster in certain sub-regions can be partially explained by the terroir of those areas. However, a gap in our understanding of the spatial relationships among wineries remains. In this article, winery-level data with geographic information system (GIS) coordinates are utilized to examine the spatial relationships among neighboring wineries. Spatial effects for the California and Washington wine industries are assessed by performing clustering tests based on wine prices and tasting scores. A spatial lag model is then estimated to test the hypothesis that there are positive effects from neighbors when analyzing the hedonic price equations. The regression results indicate that there exists strong and positive neighbor effect.”

Agent-based Models and the Spatial Sciences

Geography Compass, Volume 4 Issue 5, Pages 428 – 448, Published Online 04 May 2010

Paul M. Torrens

“Agent-based models (ABMs) are used in the spatial sciences as building-blocks for computer simulation. ABMs have a range of advantageous attributes, not least of which is their flexibility in representing dynamic and highly adaptive physical or human phenomena. ABMs facilitate the exploration of ideas about the myriad of ways that geographical systems develop, behave, interact and evolve, often supporting experimentation with geographical systems in ways that are simply not possible in the real world. Indeed, in many cases, ABMs are developed from the bottom up, pedagogically, as a tool in building theory. Geographers’ work with ABMs has helped to strengthen existing ties with related disciplines such as computer science and informatics, ecology, sustainability science, economics, anthropology, political science and the earth sciences. Primarily because of the value placed on spatial science and behavioral geography in agent-based modeling, work of this kind is helping to infuse geographical perspectives and ‘spatial thinking’ into these fields. This article reviews the development of agent-based modeling in the spatial sciences, its current uses and applications in physical and human geography and potential future trends in its research and development.”

Regional Housing Price Cycles: A Spatio-temporal Analysis Using US State-Level Data

Regional Studies, Published Online 23 April 2010

Todd H. Kuethe and Valerien O. Pede

“A study is presented of the effects of macroeconomic shocks on housing prices in the Western United States using quarterly state-level data from 1988:1 to 2007:4. The study contributes to the existing literature by explicitly incorporating locational spillovers through a spatial econometric adaptation of vector autoregression (SpVAR). The results suggest these spillovers may Granger cause housing price movements in a large number of cases. SpVAR provides additional insights through impulse response functions that demonstrate the effects of macroeconomic events in different neighbouring locations. In addition, it is demonstrated that including spatial information leads to significantly lower mean-square forecast errors.”