Laszkiewicz, Edyta - In: Acta Universitatis Nicolai Copernici, Ekonomia 45 (2014) 2, pp. 219-234
The aim of this paper is to analyze the impact of the SAR model misspecification. We concentrate on the effect of ignoring random effects (both independent and spatially correlated) in the SAR model. The results from the Monte Carlo simulation suggests the overestimation of the spatial parameter...