Ann Reg Sci (2010) 44:299–314DOI 10.1007/s00168-008-0259-2ORIGINAL PAPER
A spatiotemporal analysis of public pharmaceuticalexpenditure
Mariluz Maté Sánchez
Received: 26 January 2007 / Accepted: 14 June 2008 / Published online: 19 July 2008© Springer-Verlag 2008
A regression model for per capita public pharmaceutical expenditure,based on aggregate data from ﬁfty Spanish provinces, observed annually for the per-iod 1996–2002 is analyzed. The necessity of simultaneously controlling for dynamicpatterns and spatial autocorrelation is demonstrated. As the aim of the present andrelated studies of small-area variation is to control for spatial association rather thanto formulate it as an explicit part of a model, the traditional application of parametricspatial autocorrelation or spatial autoregression speciﬁcations seems unnecessarilyrestrictive and superﬂuous. The present study analyzes the effects of spatial associa-tion using a non-parametric spatial ﬁltering approach. The importance of adjustingfor spatial association is conﬁrmed, but it is further shown that the parametric andthe non-parametric approaches may lead to substantially different conclusions regar-ding explanation of pharmaceutical expenditure variations. Thus, the need for furtherevidence on the implications of spatial association—and the recognition that this ismore than just spatial autocorrelation and/or spatial autoregression—when analyzingcomplex large area behavior using small area data is demonstrated.
J. Lauridsen (
M. BechInstitute of Public Health – Health Economics, University of Southern Denmark,Campusvej 55, 5230 Odense M, Denmark e-mail: firstname.lastname@example.org M. BechOdense University Hospital, Odense, Denmark F. López
M. M. SánchezDepartment of Quantitative and Computering Methods,Polytechnical University of Cartagena, Cartagena, Spain