The biggest myth in spatial econometrics

James P. LeSage and R. Kelley Pace

There is near universal agreement that estimates and inferences from spatial regression models are sensitive to particular specifications used for the spatial weight structure in these models. We find little theoretical basis for this commonly held belief, if estimates and inferences are based on the true partial derivatives for a well-specified spatial regression model. We conclude that this myth may have arisen from past applied work that incorrectly interpreted the model coefficients as if they were partial derivatives, or from use of misspecified models.

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Year of publication:	2014
Authors:	Lesage, James P. ; Pace, R. Kelley
Published in:	Econometrics : open access journal. - Basel : MDPI, ISSN 2225-1146, ZDB-ID 2717594-7. - Vol. 2.2014, 4, p. 217-249
Subject:	indirect effects \| spatial regression estimates \| sensitivity to spatial weights \| Regionalökonomik \| Regional economics \| Räumliche Interaktion \| Spatial interaction \| Ökonometrie \| Econometrics \| Schätztheorie \| Estimation theory \| Regressionsanalyse \| Regression analysis \| Räumliche Verteilung \| Spatial distribution