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Cross-Section Spatial Regression Models

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Abstract

This chapter provides a selective survey of specification issues in spatial econometrics. We first present the most commonly used spatial specifications in a cross-sectional setting in the form of linear regression models including a spatial lag and/or a spatial error term, heteroskedasticity or parameter instability. Second, we present a set of specification tests that allow checking deviations from a standard, i.e., non-spatial, regression model. Focus is on unidirectional, multidirectional and robust LM tests, since these require only the estimation of the model under the null. Because of the complex links between spatial autocorrelation and spatial heterogeneity, we devote attention to the specifications incorporating both aspects and to the associated specification tests.

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Correspondence to Julie Le Gallo .

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Gallo, J.L. (2019). Cross-Section Spatial Regression Models. In: Fischer, M., Nijkamp, P. (eds) Handbook of Regional Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36203-3_85-1

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  • DOI: https://doi.org/10.1007/978-3-642-36203-3_85-1

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  • Print ISBN: 978-3-642-36203-3

  • Online ISBN: 978-3-642-36203-3

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