Gerkman, Linda Marie; Ahlgren, Niklas - In: Spatial Economic Analysis 9 (2014) 3, pp. 260-283
In this article, we introduce and evaluate testing procedures for specifying the number k of nearest neighbours in the weights matrix of a spatial econometric model. An increasing and a decreasing neighbours testing procedure are suggested. Kelejian's J-test for non-nested spatial models is used...