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A simple closed-form relation between spatial weight matrices with different scalings

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  • Pace, R. Kelley
  • LeSage, James P.

Abstract

Spatial econometric models rely on the weight matrix W to specify dependence. However, formation of W involves scalings of rows and columns. We provide a closed-form for the similarity in results between the common eigenvalue and row-stochastic scalings.

Suggested Citation

  • Pace, R. Kelley & LeSage, James P., 2021. "A simple closed-form relation between spatial weight matrices with different scalings," Economics Letters, Elsevier, vol. 207(C).
    • Handle: RePEc:eee:ecolet:v:207:y:2021:i:c:s0165176521003037
    DOI: 10.1016/j.econlet.2021.110026
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    References listed on IDEAS

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    1. Kelejian, Harry H. & Prucha, Ingmar R., 2010. "Specification and estimation of spatial autoregressive models with autoregressive and heteroskedastic disturbances," Journal of Econometrics, Elsevier, vol. 157(1), pages 53-67, July.
    2. James P. LeSage & R. Kelley Pace, 2014. "The Biggest Myth in Spatial Econometrics," Econometrics, MDPI, vol. 2(4), pages 1-33, December.
    3. Kelley Pace, R. & LeSage, James P., 2008. "A spatial Hausman test," Economics Letters, Elsevier, vol. 101(3), pages 282-284, December.
    4. Kelley Pace, R., 1997. "Performing large spatial regressions and autoregressions," Economics Letters, Elsevier, vol. 54(3), pages 283-291, July.
    5. M Tiefelsdorf & D A Griffith & B Boots, 1999. "A Variance-Stabilizing Coding Scheme for Spatial Link Matrices," Environment and Planning A, , vol. 31(1), pages 165-180, January.
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    Cited by:

    1. Kena Mi & Rulong Zhuang, 2022. "Producer Services Agglomeration and Carbon Emission Reduction—An Empirical Test Based on Panel Data from China," Sustainability, MDPI, vol. 14(6), pages 1-19, March.

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    More about this item

    Keywords

    Keyword spatial econometrics; Specification;

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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