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A wald Test for Spatial Nonstationarity

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Author Info
LAURIDSEN, J. () (Corresponding author: Associate Professor. The Econometric Group, Department of Economics, University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark. Fax: 45 6595 7766)
KOSFELD, R. () (Professor, Department of Economics, University of Kassel, D-34109 Kassel, Germany.)

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Abstract

A test strategy consisting of a two-step Lagrange multiplier test was recently suggested as a device to reveal spatial nonstationarity, spurious spatial regression and presence of a spatial cointegrating relationship between two variables. Due to the well known radicality of such pre-tests in finite samples, the present paper suggests a Wald post-test, based on maximum likelihood estimation. The finite-sample distribution of the test under nonstationarity is derived using Monte Carlo simulation and applied to an empirical example. Se ha propuesto recientemente una estrategia de contraste basada en el Multiplicador de Lagrange en dos etapas para analizar no estacionariedad espacial, regresión espacial espurea y la presencia de relaciones de cointegración en el caso bivariante. Como es conocido, estos métodos condicionados tienen problemas en muestras finitas por lo que en el trabajo se presenta un contraste de Wald, basado en la estimación de máxima verosimilitud. En el trabajo se obtiene la distribución en muestra finita del contraste bajo la hipótesis de no estacionariedad mediante simulaciones de Monte Carlo, y se aplica a un ejemplo concreto. La distribución obtenida para el contraste de Wald parece tener unas colas más densas que la distribución tradicional, chi-cuadrado con un grado de libertad.

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Publisher Info
Article provided by Estudios de Economía Aplicada in its journal Estudios de Economía Aplicada.

Volume (Year): 22 (2004)
Issue (Month): (Diciembre)
Pages: 1-12
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Handle: RePEc:lrk:eeaart:22_3_5

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Related research
Keywords: Spatial nonstationarity; spurious regression; Wald tests; Lagrange multiplier tests.;

Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Hendry, David F. & Pagan, Adrian R. & Sargan, J.Denis, 1984. "Dynamic specification," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 18, pages 1023-1100 Elsevier. [Downloadable!] (restricted)
  2. Reinhold Kosfeld & Jorgen Lauridsen, 2004. "Dynamic spatial modelling of regional convergence processes," Empirical Economics, Springer, vol. 29(4), pages 705-722, December. [Downloadable!] (restricted)
    Other versions:
  3. Granger, C.W.J. & Watson, Mark W., 1984. "Time series and spectral methods in econometrics," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 17, pages 979-1022 Elsevier. [Downloadable!] (restricted)
  4. Jørgen Lauridsen & Reinhold Kosfeld, 2006. "A test strategy for spurious spatial regression, spatial nonstationarity, and spatial cointegration," Papers in Regional Science, Blackwell Publishing, vol. 85(3), pages 363-377, 08. [Downloadable!] (restricted)
    Other versions:
  5. John Y. Campbell & Pierre Perron, 1991. "Pitfalls and Opportunities: What Macroeconomists Should Know About Unit Roots," NBER Chapters, in: NBER Macroeconomics Annual 1991, Volume 6, pages 141-220 National Bureau of Economic Research, Inc. [Downloadable!]
    Other versions:
  6. Francis X. Diebold & Marc Nerlove, 1988. "Unit roots in economic time series: a selective survey," Finance and Economics Discussion Series 49, Board of Governors of the Federal Reserve System (U.S.).
  7. Sergio J. Rey, Brett D. Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor and Francis Journals, vol. 33(2), pages 143-156, April. [Downloadable!] (restricted)
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  1. Jørgen Lauridsen & Reinhold Kosfeld, 2007. "Spatial cointegration and heteroscedasticity," Journal of Geographical Systems, Springer, vol. 9(3), pages 253-265, September. [Downloadable!] (restricted)
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