Spatial econometri and an application

Spatial econometri is collection of methods to deal with spatial effects in regression models. Spatial effects consists of spatial autocorrelation (cross-sectional dependence) and spatial heterogeneity (cross-sectional stability). Spatial econometri is sub branch which is interested in effects of spatial autocorrelation and spatial variable effects of regression models applied to cross sectional and panel data of econometrics. According to Woldo Tobler, basic rule of nature "is that everythings is connected other things but ones near is more connected than ones far away." That is in data which is studied in proximal level dependence and effection (autocorrelation) occurs spatial effect is a result of spatial dependence which is a special dimension of cross sectional dependence and spatial variability is also a special variaty case of cross sectional data. The model was interested in spatial and geography in past literature. Therefore, spatial econometric application was used at first locally and then in city and property economy and last in geography. Despite of that, spatial econometric methods in contemprary resourches and recent studies is began to be used in more tradational empirically studies of economy (such as in studies of demend analysis, international economy, labour economy, national economy, local finance, agriculture and envirementional economy) together ones mentioned before. Spatial error can be result of measure error or model misspecification or of combining of both. Key Words: Spatial autocerralation, spatial variability, spatial error, spatial dependence, spatial effect.