Template-Type: ReDIF-Paper 1.0 Author-Name: Luisa Corrado Author-Name-First: Luisa Author-Name-Last: Corrado Author-Email: lc242@econ.cam.ac.uk Author-Workplace-Name: Faculty of Economics, University of Cambridge Author-Name: Bernard Fingleton Author-Name-First: Bernard Author-Name-Last: Fingleton Author-Email: bernard.fingleton@strath.ac.uk Author-Workplace-Name: Department of Economics, University of Strathclyde. Title: Multilevel Modelling with Spatial Effects Abstract: In multilevel modelling, interest in modeling the nested structure of hierarchical data has been accompanied by increasing attention to di¤erent forms of spatial interactions across different levels of the hierarchy. Neglecting such interactions is likely to create problems of inference, which typically assumes independence. In this paper we review approaches to multilevel modelling with spatial effects, and attempt to connect the two literatures,discussing the advantages and limitations of various approaches. Length: 22 pages Creation-Date: 2011-03 Revision-Date: Publication-Status: File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2011/11-05_FINAL.pdf File-Format: Application/pdf Number: 1105 Classification-JEL: C21, C31, R0. Keywords: Multilevel Modelling, Spatial Effects, Fixed Effects, Random E¤ects, IGLS, FGS2SLS. Handle: RePEc:str:wpaper:1105