The Biggest Myth in Spatial Econometrics
Date
2014-12
Authors
LeSage, James P.
Pace, R. Kelley
Journal Title
Journal ISSN
Volume Title
Publisher
Multidisciplinary Digital Publishing Institute
Abstract
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.
Description
Keywords
indirect effects, spatial regression estimates, sensitivity to spatial weights
Citation
LeSage, J. P., & Pace, R. K. (2014). The biggest myth in spatial econometrics. Econometrics, 2(4), pp. 217-249.
Rights
Rights Holder
© 2014 The Authors.
Rights License
This work is licensed under a Creative Commons Attribution 4.0 International License.