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Model selection strategies in a spatial setting: Some additional results

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Author Info

  • Mur, Jesús
  • Angulo, Ana

Abstract

This paper continues from the discussion of Florax et al. (Florax, R., H. Folmer and S. Rey, 2003. Specification searches in spatial econometrics: the relevance of Hendry's methodology. Regional Science and Urban Economics, 33, 557-579.), regarding the properties of various specification strategies for spatial econometric models. Habitual practise has popularised a technique based on the well-known Lagrange Multipliers, characterized as a Specific-to-General approach, and which seems to give good results. In our work, we contemplate other alternatives, some of which may be seen as slight variations of this proposal, including the selection tests of Vuong (Vuong, Q., 1989. Likelihood ratio-tests for model selection and non-nested hypotheses. Econometrica, 57, 307-333.) and of Clarke (Clarke, K., 2003. Nonparametric model discrimination in international relations. Journal of Conflict Resolutions, 47, 72-93.). We also examine an approach of the General-to-Specific type, as clearly opposite to the others. The comparison of the two strategies is carried out through a Monte Carlo experiment, the results of which are quite diffuse, in the sense that we do not find conclusive evidence in favour of either of these two approaches. However, it should be recognized that the General-to-Specific strategy seems to be more robust to the existence of anomalies in the Data Generating Process.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 39 (2009)
Issue (Month): 2 (March)
Pages: 200-213

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Handle: RePEc:eee:regeco:v:39:y:2009:i:2:p:200-213

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Web page: http://www.elsevier.com/locate/regec

Related research

Keywords: Spatial econometrics Specification strategy Model selection techniques;

References

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Citations

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Cited by:
  1. Faroek Lazrak & Peter Nijkamp & Piet Rietveld & Jan Rouwendal, 2014. "The market value of cultural heritage in urban areas: an application of spatial hedonic pricing," Journal of Geographical Systems, Springer, vol. 16(1), pages 89-114, January.
  2. Hansen, Winslow D. & Naughton, Helen T., 2013. "The effects of a spruce bark beetle outbreak and wildfires on property values in the wildland–urban interface of south-central Alaska, USA," Ecological Economics, Elsevier, vol. 96(C), pages 141-154.
  3. Suárez Cano, Patricia & Mayor Fernández, Matías & Cueto Iglesias, Begoña, 2012. "La eficiencia de los servicios públicos de empleo en España en un escenario descentralizado: un análisis desde la perspectiva de la oferta/Efficiency of Public Employment Services in Spain in a Dec," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 757 (22 pag, Agosto.
  4. Millo, Giovanni, 2014. "Maximum likelihood estimation of spatially and serially correlated panels with random effects," Computational Statistics & Data Analysis, Elsevier, vol. 71(C), pages 914-933.
  5. Filiz Yesilyurt & J. Elhorst, 2014. "A regional analysis of inflation dynamics in Turkey," The Annals of Regional Science, Springer, vol. 52(1), pages 1-17, January.
  6. 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, vol. 43(3), pages 429-444.
  7. 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, vol. 5(2), pages 55-63, July.
  8. Andrea Vaona, 2010. "Spatial autocorrelation and the sensitivity of RESET: a simulation study," Journal of Geographical Systems, Springer, vol. 12(1), pages 89-103, March.
  9. Suárez Cano, Patricia & Mayor Fernández, Matías & Cueto Iglesias, Begoña, 2011. "How important is access to employment offices in Spain? An urban and non-urban perspective," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 21, pages 119-140.
  10. Rafa Madariaga & Joan Carles Martori & Ramon Oller, 2011. "Income, distance and spatial effects in the Monocentric model. The Barcelona Metropolitan Area case," ERSA conference papers ersa11p511, European Regional Science Association.

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