Regional Econometric Modeling

This book is the first volume of the International Series in Economic Model- ing, a series designed to summarize current issues and procedures in applied modeling within various fields of economics and to offer new or alternative approaches to prevailing problems. In selecting the subject area for the first volume, we were attracted by the area to which applied modeling efforts are increasingly being drawn, regional economics and its associated subfields. Applied modeling is a broad rubric even when the focus is restricted to econometric modeling issues. Regional econometric modeling has posted a record of rapid growth during the last two decades and has become an established field of research and application. Econometric models of states and large urban areas have become commonplace, but the existence of such models does not signal an end to further development of regional econ- ometric methods and models. Many issues such as structural specification, level of geographic detail, data constraints, forecasting integrity, and syn- thesis with other regional modeling techniques will continue to be sources of concern and will prompt further research efforts. The chapters of this volume reflect many of these issues. A brief synopsis of each contribution is provided below: Richard Weber offers an overview of regional econometric models by discussing theoretical specification, nature of variables, and ultimate useful- ness of such models. For an illustration, Weber describes the specification of the econometric model of New Jersey.