Spatial econometrics is a field that deals with spatial dependence and spatial heterogeneity, which are critical aspects of data used in regional science. These characteristics can make standard econometric techniques inappropriate. This book provides a comprehensive approach to incorporating spatial effects into econometrics by combining recent research results. The author focuses on demonstrating how spatial effects can be considered as special cases of general frameworks in standard econometrics and outlines the need for a separate set of methods and techniques within spatial econometrics. The book differs from spatial statistics in its focus on the relevance of spatial effects on model specification, estimation, and inference, using a model-driven approach rather than a data-driven one. It combines a rigorous econometric perspective with a comprehensive treatment of methodological issues in spatial analysis. The book includes both technical treatments of tests and estimators and extensive illustrations and practical considerations, making it of interest to researchers in regional science, spatial analysis, and applied econometrics. It is also suitable as a graduate-level text in spatial statistics, econometrics, and regional analysis. The book includes a detailed discussion of spatial econometric models, estimation methods, hypothesis testing, and model validation. It covers various types of spatial models, including spatial regression models, spatial error models, and spatially varying coefficient models. The book also discusses spatial dependence and heterogeneity, and provides empirical examples and applications. The author acknowledges the contributions of various individuals and institutions that supported the research and writing of the book. The book is dedicated to Emily, who served as a general editor and graphic illustrator.Spatial econometrics is a field that deals with spatial dependence and spatial heterogeneity, which are critical aspects of data used in regional science. These characteristics can make standard econometric techniques inappropriate. This book provides a comprehensive approach to incorporating spatial effects into econometrics by combining recent research results. The author focuses on demonstrating how spatial effects can be considered as special cases of general frameworks in standard econometrics and outlines the need for a separate set of methods and techniques within spatial econometrics. The book differs from spatial statistics in its focus on the relevance of spatial effects on model specification, estimation, and inference, using a model-driven approach rather than a data-driven one. It combines a rigorous econometric perspective with a comprehensive treatment of methodological issues in spatial analysis. The book includes both technical treatments of tests and estimators and extensive illustrations and practical considerations, making it of interest to researchers in regional science, spatial analysis, and applied econometrics. It is also suitable as a graduate-level text in spatial statistics, econometrics, and regional analysis. The book includes a detailed discussion of spatial econometric models, estimation methods, hypothesis testing, and model validation. It covers various types of spatial models, including spatial regression models, spatial error models, and spatially varying coefficient models. The book also discusses spatial dependence and heterogeneity, and provides empirical examples and applications. The author acknowledges the contributions of various individuals and institutions that supported the research and writing of the book. The book is dedicated to Emily, who served as a general editor and graphic illustrator.