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Patrick, Doupe. (2014) The costs of error in setting reference rates for reduced deforestation.
In: Working Papers. RePEc:ags:ancewp:249497.
Full description at Econpapers
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The basic model is in (10), where wij is a weight determining how much of a neighbour country j is to country i. Although I am only forecasting agricultural land expan36 sion rates for a handful of countries, j can be any of the 224 currently existing countries, not just for those I forecast agricultural land expansion.. di,t+1 = θi,0 + Ïi,1di,t + θi,2 ∑ j=1 wij`j,t + ei,t+1 (10) The data for the weighting matrix comes from Mayer and Zignago (2011). The data is in the form of a 224×224 matrix, with elements equal to 0 if the row country does not share a border with the column country. The cell equals 1 if the row country shares a border with the column country (see table 7).
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