Spatial Microeconometrics, Distance Matrix

Reply Thu 4 Mar, 2021 07:56 am
Hi evryone, I have to model the firm's competition into a spatial econometrics model.
I want to contrsuct a spatial weighted matrix that rapresent the level of competition among firms. I have no idea on how to built that. There are some paper-studies usefull?
I find only W construct with inverse of gheographical distance (that could be a good proxies since neearest firms could compete on the same gheographical market), or a "Technological Distance Matrix" that construct a technology network usefull for find the knowledge area that have more interaction (maybe it could be also a way to find the knowledge sector with more market competition).
I would to ask you if there are better way to construct a spatial weighted matrix for firms' market competition
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