Spatial Autocorrelation Or Model Misspecification?
Daniel McMillen (mcmillen@illinois.edu)
International Regional Science Review, 2003, vol. 26, issue 2, 208-217
Abstract:
A Monte Carlo experiment illustrates one of the pitfalls of spatial modeling. Specification tests indicate spatial autocorrelation when functional form misspecification is actually the only problem with the model. Incorrect functional forms and omitted variables that are correlated over space produce spurious spatial autocorrelation.
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:sae:inrsre:v:26:y:2003:i:2:p:208-217
DOI: 10.1177/0160017602250977
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