Document Type
Article
Publication Date
12-1-2014
Abstract
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.
Publication Source (Journal or Book title)
Econometrics
First Page
217
Last Page
249
Recommended Citation
Lesage, J., & Pace, R. (2014). The biggest myth in spatial econometrics. Econometrics, 2 (4), 217-249. https://doi.org/10.3390/econometrics2040217