Sur model with spatial effects: an application to mental health expenditure

This study analyses, through the adoption of a seemingly unrelated regression approach, the temporal evolution of policy interactions among local authorities in England when allocating mental health resources. This new approach in health economics may shed light on the degree of interdependence between adjacent municipalities at a specific point in time (e.g. before, during, or after a change in policy), exploiting the information carried by the panel, rather than that of a single cross-section.