The Effect Of Omitted Spatial Effects And Social Dependence In The Modelling Of Household Expenditure For Fruits And Vegetables

Edyta Laszkiewicz (), Dong Guanpeng and Harris Richard
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Dong Guanpeng: Ph.D., University of Sheffield, Sheffield Methods Institute
Harris Richard: Full Professor at the University of Bristol, School of Geographical Sciences

Comparative Economic Research, 2014, vol. 17, issue 4, 155-172

Abstract: As is well known, ignoring spatial heterogeneity leads to biased parameter estimates, while omitting the spatial lag of a dependent variable results in biasness and inconsistency (Anselin, 1988). However, the common approach to analysing households’ expenditures is to ignore the potential spatial effects and social dependence. In light of this, the aim of this paper is to examine the consequences of omitting the spatial effects as well as social dependence in households’ expenditures.

Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:coecre:v:17:y:2014:i:4:p:155-172:n:10

DOI: 10.2478/cer-2014-0038

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