Spatial Econometric Issues for Bio-Economic and Land-Use Modeling

We survey the literature on spatial bio-economic and land-use modelling and review thematic developments. Unobserved site-specific heterogeneity is common in almost all of the surveyed works. Heterogeneity appears also to be a significant catalyst engendering significant methodological innovation. To better equip prototypes to adequately incorporate heterogeneity, we consider a smorgasbord of extensions. We highlight some problems arising with their application; provide Bayesian solutions to some; and conjecture solutions for others.