Abstract
We review specifications of spatial structure on spatial autoregressive models in some former researches. We propose a new idea, specifications of one directional effect, not mutual dependencies and try to utilize the concept to a land price model. Spatial (or network) interdependency should exist almost everywhere in real world. We rarely use econometric models with spatial autoregressive structure, however. With an empirical study (maximum likelihood estimations of a spatial autoregressive model on land price data in Miyagi Prefecture, Japan), we show that the spatial dependencies may not be recognized if we assume that such dependencies are reciprocal.
