LM tests for spatial correlation in spatial models with limited dependent variables
Xi Qu and
Lung-Fei Lee ()
Regional Science and Urban Economics, 2012, vol. 42, issue 3, 430-445
Models of limited dependent variables are of great interest in econometrics. This paper focuses on the specification and hypothesis test of spatial models which have a Tobit structure. We derive an extended central limit theorem for statistics of a linear–quadratic form with multivariate random variables. We consider the LM statistics for testing spatial correlation and establish their asymptotic distributions. The tests are applied to an empirical example: we detect the presence of competition among school districts on school district income tax in Iowa.
Keywords: Spatial econometric models; LM tests; Limited dependent variables (search for similar items in EconPapers)
JEL-codes: C12 R50 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:42:y:2012:i:3:p:430-445
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