The Biggest Myth in Spatial Econometrics
LeSage, James P.
Pace, R. Kelley
Multidisciplinary Digital Publishing Institute
There is near universal agreement that estimates and inferences from spatial regression models are sensitive to particular specifications used for the spatial weight structure in these models. We find little theoretical basis for this commonly held belief, if estimates and inferences are based on the true partial derivatives for a well-specified spatial regression model. We conclude that this myth may have arisen from past applied work that incorrectly interpreted the model coefficients as if they were partial derivatives, or from use of misspecified models.
indirect effects, spatial regression estimates, sensitivity to spatial weights
LeSage, J. P., & Pace, R. K. (2014). The biggest myth in spatial econometrics. Econometrics, 2(4), pp. 217-249.
© 2014 The Authors.
This work is licensed under a Creative Commons Attribution 4.0 International License.