Spatial weights matrix construction and economic space gravitational effects analysis—Empirical testing based on European debt crisis

LI Li, TIAN Yi-xiang, ZHANG Gao-xun, ZHANG Hong-lei

Systems Engineering - Theory & Practice ›› 2015, Vol. 35 ›› Issue (8) : 1918-1927.

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Systems Engineering - Theory & Practice ›› 2015, Vol. 35 ›› Issue (8) : 1918-1927. DOI: 10.12011/1000-6788(2015)8-1918

Spatial weights matrix construction and economic space gravitational effects analysis—Empirical testing based on European debt crisis

  • LI Li, TIAN Yi-xiang, ZHANG Gao-xun, ZHANG Hong-lei
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Abstract

Spatial econometrics is a hot area of research in economics today, but spatial weights matrix has been a bottleneck in the development of spatial econometrics. This paper introduces spatial gravitational effect of the regional economic, while combined with geographic regions and economic status indicators, constructs a new spatial weights matrix. At the background of European debt crisis, we examine sensitivity and effectiveness of gravitational effects spatial weights matrix (GESWM). Then through dynamically setting, we use it to mine contagion path and examine economic crisis contagion mode. The empirical results show that when mining multidimensional space effects of financial data, GESWM has a significant advantage. Furthermore, we find financial capital channel is the fundamental of economic crisis contagion path, economic crisis contagion is the results together of bidirectional contagion and indirectly related contagion.

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spatial econometrics / spatial weights matrix / gravitational effects / European debt crisis / Copula contagious index

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LI Li , TIAN Yi-xiang , ZHANG Gao-xun , ZHANG Hong-lei. Spatial weights matrix construction and economic space gravitational effects analysis—Empirical testing based on European debt crisis. Systems Engineering - Theory & Practice, 2015, 35(8): 1918-1927 https://doi.org/10.12011/1000-6788(2015)8-1918

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