Spatial Unit Roots in Regressions: A Practitioner's Guide and a Stata Package

Sascha O. Becker (s.o.becker@warwick.ac.uk), P. David Boll (david.boll@warwick.ac.uk) and Hans-Joachim Voth (voth@econ.uzh.ch)
Additional contact information
Sascha O. Becker: University of Warwick
P. David Boll: University of Warwick
Hans-Joachim Voth: University of Zurich

No 17651, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Spatial unit roots can lead to spurious regression results. We present a brief overview of the methods developed in Müller and Watson (2024) to test for and correct for spatial unit roots. We also introduce a suite of Stata commands (-spur-) implementing these techniques. Our commands exactly replicate results in Müller and Watson (2024) using the same Chetty et al. (2014) data. We present a brief practitioner’s guide for applied researchers.

Keywords: spurtest; spurious spatial regression; spatial unit roots; spurtransform (search for similar items in EconPapers)
JEL-codes: C21 C22 C52 C87 N0 P0 R12 R15 (search for similar items in EconPapers)
Date: 2025-01
New Economics Papers: this item is included in nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://docs.iza.org/dp17651.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp17651

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
library@iza.org

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte (hinte@iza.org).