Omitted factors and spatial lags in the dependent variable
Harry Kelejian ()
Letters in Spatial and Resource Sciences, 2014, vol. 7, issue 1, 23-33
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)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
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
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 ().