Next Article in Journal
Acknowledgement to Reviewers of Econometrics in 2014
Next Article in Special Issue
Heteroskedasticity of Unknown Form in Spatial Autoregressive Models with a Moving Average Disturbance Term
Previous Article in Journal
Testing for A Set of Linear Restrictions in VARMA Models Using Autoregressive Metric: An Application to Granger Causality Test
Open AccessArticle

The Biggest Myth in Spatial Econometrics

1
Department of Finance and Economics, McCoy College of Business Administration, Texas State University, 601 University Drive, San Marcos, TX 78666, USA
2
Department of Finance, E.J. Ourso College of Business Administration, Louisiana State University, Baton Rouge, LA 70803, USA
*
Author to whom correspondence should be addressed.
Econometrics 2014, 2(4), 217-249; https://doi.org/10.3390/econometrics2040217
Received: 29 September 2014 / Revised: 18 November 2014 / Accepted: 8 December 2014 / Published: 23 December 2014
(This article belongs to the Special Issue Spatial Econometrics)
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. View Full-Text
Keywords: indirect effects; spatial regression estimates; sensitivity to spatial weights indirect effects; spatial regression estimates; sensitivity to spatial weights
Show Figures

Figure 1

MDPI and ACS Style

LeSage, J.P.; Pace, R.K. The Biggest Myth in Spatial Econometrics. Econometrics 2014, 2, 217-249.

Show more citation formats Show less citations formats

Article Access Map

1
Only visits after 24 November 2015 are recorded.
Back to TopTop