Omitted factors and spatial lags in the dependent variable

Harry Kelejian ()

Letters in Spatial and Resource Sciences, 2014, vol. 7, issue 1, 23-33

Abstract: It’s been suggested a number of times that the significance of the estimated coefficient of the spatial lag of the dependent variable may be the result of an omitted common factor which may be spatially correlated-see, among others, (Gibbons and Overman in J Reg Sci 52:172–191 2012 and Corrado and Fingleton in J Reg Sci 52(2):210–239 2012 ). The concern is important because this parameter is often of primary interest. The purpose of this paper is to consider this issue in a formal context. We give conditions under which the estimator of that parameter is consistent and asymptotically normal, and when it is not. We consider two cases. In one case the omitted factor is exogenous, and in the other it is endogenous. We give results for both cases. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: Spatial lag in dependent variable; Omitted factor; Estimation consistency; C01; C12; C13 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1007/s12076-013-0098-3 (text/html)
Access to full text is restricted to subscribers.

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:spr:lsprsc:v:7:y:2014:i:1:p:23-33

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/12076

DOI: 10.1007/s12076-013-0098-3

Access Statistics for this article

Letters in Spatial and Resource Sciences is currently edited by Henk Folmer and Amitrajeet A. Batabyal

More articles in Letters in Spatial and Resource Sciences from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().