I am trying to make a research about determinants of local development with the SDM model. The theoretic framework, but also the empirical evidence point to the SDM model. I am doing my reserach in Stata 13.1, but I think it is not important.
I have a data-set with N=131 and T=9. N are mostly rural regions with few big towns (50.000 - 180.000 inhabitants) and T are years from 2010 to 2018. The period can be considered as crisis that started in 2008 (rural areas are lagging).
Empirical evidence (Hausman test) points into the directon of fe SDM model.
To analyze the spatial correlation I have to use the spatial fixed SDM. Am I correct?
To avoid the influence of the crisis, can I use the time fixed SDM?