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Raising the bar (5). Spatial Economic Analysis. This editorial summarizes and comments on the papers published in this issue 12(1) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper examines the impact of the level of education on the decision to migrate and finds that it is approximately twice as large if both variables are modelled simultaneously. The second paper is one of the first papers to introduce a spatial component to models of international environmental agreements and to develop an exciting overlap with New Economic Geography. The third paper provides a tool, applied to Beijing, with which urban economic planners can investigate the role of variation and selection mechanisms in cluster development and identify possible paths of growth. The fourth paper contributes to the existing literature on retail geography by examining the role of consumption possibilities as an urban amenity. The fifth paper develops a Bayesian estimator of a linear regression model with spatial lags among the dependent variable, the explanatory variables and the disturbances. Finally, the sixth paper develops a semi-parametric generalized method of moments (GMM) estimator for a spatial autoregressive model with space-varying coefficients of the explanatory variables and a spatial autoregressive coefficient common to all units.

This editorial summarizes and comments on the papers published in issue 11(4) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper deals with common factors and spatial dependence in the error term specification of a production function model. The second paper sets forth a New Economic Geography (NEG) model with production activities that vary in their complexity, so as to analyse the impact on specialization patterns across different regions. The third paper measures the efficiency of local public investments using a relatively unknown econometric technique in which the time span over which the variables in the regression equation are measured is increased by one time period every run. The fourth paper adopts a conditional quantile regression approach to determine the impact of people employed in informal jobs on the wage distribution in Colombia and five of its regions. Finally, the last paper proposes and tests two new Bayesian variable selection approaches for spatial econometric models.

In this editorial, we summarize and comment on the papers published in issue 11.1 so as to raise the bar in applied spatial economic research and highlight new trends. The first paper employs the J-test to discriminate between two economic-theoretical explanations for the wage curve. The second applies a two-step ML procedure to measure the impact of volatility on economic growth. The third tests for endogeneity in the Spatial lag of X (SLX) model and whether or not the model should be extended to contain a spatial lag. The fourth utilizes the gravity model to test whether or not grids should be merged into larger units of observations. Finally, the last adopts a time-space recursive model to test the ripple effect and (linguistic) border effect hypotheses on housing prices in Belgium.

This editorial summarizes and comments on the papers published in issue 11(3) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper proposes spatial and a-spatial indicators to describe the networks of airline companies around the world. The second paper sets forth a two-regime gravity-type model with an endogenous threshold parameter to assess the effect of labour market conditions on interregional migration flows. The third paper utilizes micro-data to explain student migration flows to higher education institutions. The fourth paper is among the first to make use of simulation-based location quotients in a multiregional input-output model. Finally, the last paper provides a purely economic-theoretical model on cooperative limit pricing in the context of spatial competition. ResumeCet editorial resume et commente les articles parus dans le numero 11(3) afin de placer la barre de la recherche economique spatiale appliquee plus haut et de souligner les nouvelles tendances. Le premier article propose des indicateurs spatiaux et non-spatiaux pour presenter les reseaux de compagnies aeriennes partout dans le monde. Le deuxieme article expose un modele de gravite type a deux regimes dote d'un parametre de seuil endogene pour evaluer l'impact des conditions du marche du travail sur les flux migratoires interregionaux. Le troisieme article emploie des donnees microeconomiques afin d'expliquer les flux migratoires des etudiants a destination des etablissements d'enseignement superieur. Le quatrieme article compte parmi les premiers a se servir des quotients de localisation sur base de la simulation dans le contexte d'un modele des entrees-sorties multiregional. Pour terminer, le dernier article fournit un modele purement economico-theorique sur les prix limites des cooperatives dans le cadre de la concurrence spatiale. ResumenEste editorial es un resumen y una observacion acerca de los articulos publicados en el numero 11(3) con la finalidad de elevar el liston en la investigacion economica espacial aplicada y resaltar las nuevas tendencias. En el primer articulo se proponen indicadores espaciales y no espaciales para describir las redes de las companias aereas de todo el mundo. En el segundo articulo se presenta un modelo de tipo gravitacional de dos regimenes con un parametro de umbral endogeno para evaluar el efecto de las condiciones del mercado laboral en los flujos de migracion interregional. En el tercer articulo se utilizan datos micro para explicar los flujos de migracion estudiantil a centros de educacion superior. El cuarto articulo es uno de los primeros en utilizar cocientes de localizacion basados en una simulacion en un modelo plurirregional de entradas y salidas. Finalmente, el ultimo articulo ofrece un modelo puramente economico-teorico sobre el precio del limite de las cooperativas en el contexto de la competencia espacial. ????????????????????????, ????????????, ???????????????????????????????????????????????????, ??????????????????????????????????????????, ????????????????????????????????????????????????????????????, ???????????????, ???????????

This paper extends Kelejian and Prucha's [1998] feasible generalized spatial two-stage least squares (FGS2SLS) estimator to account for endogenous variables due to system feedback, given an autoregressive or a moving average error process. An empirical example illustrating the different estimators is proposed. The finite sample properties of the estimators are investigated by means of Monte-Carlo simulations depending of the sample size, the weights matrix, the presence of cross-equation correlation and the nature of the instruments.

In the face of U.S. military superiority, potential adversaries have begun to turn to asymmetrical means as a way to counter that capability. Our adversaries understand that U.S.-led coalitions will dominate the battlespace, if given the opportunity to flow their forces. Likewise, adversaries may try to inflict casualties on U.S. and allied forces early in the conflict in an attempt to make the coalition lose its will to fight. Such attacks are likely to include one or more elements of chemical, biological, radiological, nuclear, and high-yield explosives (CBRNE) warfare. Recent events such as the terrorist attacks of September 11, 2001, the subsequent dispersal of anthrax-contaminated letter threats, North Korea's October 2002 declaration of the reactivation of their nuclear facilities and missile testing programs, and the threat, fortunately unrealized, of Iraqi use of chemical and biological weapons against coalition forces in Operation Iraqi Freedom, highlighted the specter of weapons of mass destruction (WMD) use and brought it to the forefront of our national security challenge as well as our national interest. Of equal concern is the availability of an extensive range of advanced weapons and technologies, dual-use production and storage facilities, and scientific/technical know how that has accelerated the proliferation of WMD capabilities.