Abstract
A Monte Carlo experiment illustrates one of the pitfalls of spatial modeling. Specification tests indicate spatial autocorrelation when functional form misspecification is actually the only problem with the model. Incorrect functional forms and omitted variables that are correlated over space produce spurious spatial autocorrelation.
Original language | English (US) |
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Pages (from-to) | 208-217 |
Number of pages | 10 |
Journal | International Regional Science Review |
Volume | 26 |
Issue number | 2 |
DOIs | |
State | Published - Apr 2003 |
Keywords
- Kernel regression
- Lagrange multiplier (LM) tests
- Nonparametric
- Spatial autocorrelation
ASJC Scopus subject areas
- General Environmental Science
- General Social Sciences