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Spatial Lags And Spatial Errors Revisited: Some Monte Carlo Evidence

In: Spatial and Spatiotemporal Econometrics

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  • Robin Dubin
Abstract
From a theoretical point of view, a spatial econometric model can contain both a spatially lagged dependent variable (spatial lag) and a spatially autocorrelated error term (spatial error). However, such models are rarely used in practice. This is because (assuming a lattice model approach is used for both the spatial lag and spatial error) the model is difficult to estimate1unless the weight matrices are different for the spatial lag and the spatial error.

Suggested Citation

  • Robin Dubin, 2004. "Spatial Lags And Spatial Errors Revisited: Some Monte Carlo Evidence," Advances in Econometrics, in: Spatial and Spatiotemporal Econometrics, pages 75-98, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aecozz:s0731-9053(04)18002-x
    DOI: 10.1016/S0731-9053(04)18002-X
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    Cited by:

    1. Paula Margaretic & Christine Thomas-Agnan & Romain Doucet, 2017. "Spatial dependence in (origin-destination) air passenger flows," Papers in Regional Science, Wiley Blackwell, vol. 96(2), pages 357-380, June.

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