| This paper presents an econometric analysis of land-cover change in western Honduras. Ground-truthed satellite image analysis indicates that between 1987 and 1996, net reforestation occurred in the 1,015.12 km2 study region. While some reforestation can be attributed to a 1987 ban on logging, the area of reforestation greatly exceeds that of previously clear-cut areas. Further, new area was also deforested between 1987-1996. Thus, the observed land-cover changes most likely represent a complex mosaic of changing land-use patterns across time and space. We estimate a random-effects probit model to capture drivers of land-cover change that are spatial, temporal or both. We employ two techniques to correct for spatial error dependence in econometric analysis... |