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Specification of spatial models: A simulation study on weights matrices

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  • Stanislav Stakhovych
  • Tammo H.A. Bijmolt
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    Abstract

    The correct specification of spatial models, and especially the choice of the spatial weights matrix, represents a crucial decision for researchers using georeferenced data. However, few guidelines exist on which weights matrix is most appropriate in certain cases. This paper therefore (1) studies the sensitivity of testing and estimating spatial models with different weights matrix specifications and (2) formulates recommendations for researchers applying spatial models regarding model selection and weights matrix specification. The research is based on Monte Carlo simulations with synthetic data. Copyright (c) 2008 the author(s). Journal compilation (c) 2008 RSAI.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Papers in Regional Science.

    Volume (Year): 88 (2009)
    Issue (Month): 2 (06)
    Pages: 389-408

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    Handle: RePEc:bla:presci:v:88:y:2009:i:2:p:389-408

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190

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    Cited by:
    1. Le Gallo, Julie & Fingleton, Bernard, 2012. "Measurement errors in a spatial context," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 42(1-2), pages 114-125.
    2. Laurent Van Malderen & Marcel Gérard, 2012. "Tax Interaction Among Walloon Municipalities: Is There Room For Partisan Monopoly Effect?," ERSA conference papers ersa12p1051, European Regional Science Association.
    3. Daniel Arribas-Bel & Julia Koschinsky & Pedro Amaral, 2012. "Improving the multi-dimensional comparison of simulation results: a spatial visualization approach," Letters in Spatial and Resource Sciences, Springer, Springer, vol. 5(2), pages 55-63, July.
    4. Selin Özyurt & Timo Mitze, 2012. "The Spatial Dimension of Trade- and FDI-driven Productivity Growth in Chinese Provinces – A Global Cointegration Approach," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0308, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Nguyen-Hoang, Phuong & Yinger, John, 2011. "The capitalization of school quality into house values: A review," Journal of Housing Economics, Elsevier, Elsevier, vol. 20(1), pages 30-48, March.
    6. Björn Alecke & Timo Mitze & Gerhard Untiedt, 2013. "Growth effects of regional policy in Germany: results from a spatially augmented multiplicative interaction model," The Annals of Regional Science, Springer, Springer, vol. 50(2), pages 535-554, April.
    7. Seya, Hajime & Yamagata, Yoshiki & Tsutsumi, Morito, 2013. "Automatic selection of a spatial weight matrix in spatial econometrics: Application to a spatial hedonic approach," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 43(3), pages 429-444.
    8. Marcel Gérard & Laurent van Malderen, 2012. "Tax Interaction among Walloon Municipalities: Is there Room for Yardstick Competition, Intellectual Trend and Partisan Monopoly Effect?," CESifo Working Paper Series 4025, CESifo Group Munich.
    9. Laurent Van Malderen & Bart Jourquin & Isabelle Thomas, 2012. "Employers Transport Plans: Do They Change The Commuting Behaviour Of Workers?," ERSA conference papers ersa12p1048, European Regional Science Association.

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