Geographical Analysis

Estimation of Anisotropic, Time‐Varying Spatial Spillovers of Fine Particulate Matter Due to Wind Direction

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This paper investigates the effect of daily wind direction and speed on the spatio‐temporal distribution of particulate matter, . Interdependencies between the values of different monitoring sites are characterized by incorporating time‐varying anisotropic spatial weighting matrices. These weights are parameterized with respect to wind direction, speed and a range that marks the bandwidth of admissible deviations between wind direction and bearing. The empirical analysis is based on daily values recorded by monitoring sites located across the eastern United States in 2015 as well as several meteorological regressors. More precisely, we propose a space‐time dynamic panel data model with different spatial autoregressive, temporal and exogenous dependencies. All model parameters are estimated by the quasi‐maximum likelihood approach. The estimation procedure, including the identification of the range and spatial parameters, is verified by Monte Carlo simulations. We show that part of the spatial dependency of values is explained by wind direction.

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