EconPapers    
Economics at your fingertips  
 

The Biggest Myth in Spatial Econometrics

James LeSage () and R. Kelley Pace ()
Additional contact information
R. Kelley Pace: Department of Finance, E.J. Ourso College of Business Administration, Louisiana State University, Baton Rouge, LA 70803, USA

Econometrics, 2014, vol. 2, issue 4, 1-33

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.

Keywords: indirect effects; spatial regression estimates; sensitivity to spatial weights (search for similar items in EconPapers)
JEL-codes: B23 C C00 C01 C1 C2 C3 C4 C5 C8 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (80) Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/2225-1146/2/4/217/pdf (application/pdf)
https://www.mdpi.com/2225-1146/2/4/217/ (text/html)

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:gam:jecnmx:v:2:y:2014:i:4:p:217-249:d:43830

Access Statistics for this article

Econometrics is currently edited by Prof. Dr. Kerry Patterson

More articles in Econometrics from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().

 
Page updated 2020-06-17
Handle: RePEc:gam:jecnmx:v:2:y:2014:i:4:p:217-249:d:43830