Spatial unit roots in regressions : a practitioner's guide and a stata package

Sascha O. Becker, P. David Boll, Hans-Joachim Voth

Spatial unit roots can lead to spurious regression results. We present a brief overview of the methods developed in M¨uller and Watson (2024) to test for and correct for spatial unit roots. We also introduce a suite of Stata commands (-spur-) implementing these techniques. Our commands exactly replicate results in M¨uller and Watson (2024) using the same Chetty et al. (2014) data. We present a brief practitioner's guide for applied researchers.

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Year of publication:	January 2025
Authors:	Becker, Sascha O. ; Boll, P. David ; Voth, Hans-Joachim
Publisher:	Berlin, Germany : Rockwool Foundation Berlin
Subject:	Regressionsanalyse \| Regression analysis \| Theorie \| Theory \| Einheitswurzeltest \| Unit root test