Over the last decades spatial econometric models have represented a common tool for
measuring spillover effects across different geographical entities (counties, provinces,
regions or nations). The aim of this paper is to investigate the issue of measuring spatial
spillovers in the presence of institutional constraints that can be geographically defined. In
these cases, assuming that spatial effects are not affected by the institutional setting may
produce biased estimates due to the composition of twodistinct sources of spatial …