This paper introduces a spatial panel data model describing local agents’ intertemporal decision-making with their network interactions and network evolution. Our model’s purpose is to give a tool to analyze local governments’ behaviors when there exist network interactions among them with endogenously changing networks. To provide a theoretical foundation of our model, we establish a network interaction model for forward-looking agents. An agent’s current action can affect his future network links via time-varying economic indicators. To estimate the model’s parameters, we consider a GMM estimation method based on first-order conditions of agents’ approximated lifetime problems. Asymptotic properties of the GMM estimator are studied for statistical inferences. Using our model, we find evidence of positive spillovers among U.S. states’ public welfare expenditures with coevolution between them and spatial-economic networks.

本文介绍了一个空间面板数据模型，描述了本地代理与其网络交互和网络演化的跨期决策。我们的模型的目的是提供一个工具来分析地方政府之间存在网络交互时的行为以及内生变化的网络。为了为我们的模型提供理论基础，我们为前瞻性代理建立了一个网络交互模型。代理当前的行为可以通过随时间变化的经济指标影响他未来的网络链接。为了估计模型的参数，我们考虑了基于代理近似寿命问题的一阶条件的 GMM 估计方法。研究 GMM 估计量的渐近特性以进行统计推断。使用我们的模型，我们发现了美国之间积极溢出的证据