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CORRECTING FOR SPATIAL EFFECTS IN LIMITED DEPENDENT VARIABLE REGRESSION: ASSESSING THE VALUE OF "AD-HOC" TECHNIQUES

Alessandro (Alex) De Pinto () and Gerald Nelson ()

No 19782, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: A common test for spatial dependence in regression analysis with continuous dependent variables is the Moran's I. For limited dependent variable models, the standard definition of a residual breaks down because yi is qualitative. Efforts to correct for potential spatial effects in limited dependent variable models have relied on ad-hoc methods such as including a spatial lag variable or using a regular sample that omits neighboring observations. Kelejian and Prucha have recently developed a version of Moran's I for limited dependent variable models. We present the statistic in a more accessible way and use it to test the value of previously-used ad-hoc techniques with a specific data set. Keywords: Moran's I, Spatial Autocorrelation, Limited Dependent Variable Models, Land-Use Change, Geographical Information Systems (GIS),

Keywords: Research; Methods/; Statistical; Methods (search for similar items in EconPapers)
Pages: 20
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea02:19782

DOI: 10.22004/ag.econ.19782

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