Locally most powerful tests for spatial interactions in the simultaneous SAR Tobit model
AbstractThe simultaneous SAR Tobit model is useful to analyze censored data in a spatial or social interaction setting. This paper focuses on three classical tests of spatial interactions in the simultaneous SAR Tobit model. We derive the asymptotic distributions of those three tests under the null and the local alternative hypotheses, establish their asymptotic equivalence and local efficiency, and study finite sample properties by the Monte Carlo simulation. The tests are applied to an empirical example on the presence of competition among school districts on school district income tax in Iowa.
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Bibliographic InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 43 (2013)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/regec
Spatial Tobit model; Three classical tests; Locally most powerful;
Find related papers by JEL classification:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
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