How to get rid of W: a latent variables approach to modelling spatially lagged variables
AbstractIn this paper we propose a structural equation model (SEM) with latent variables to model spatial dependence. Rather than using the spatial weights matrix W, we propose to use latent variables to represent spatial dependence and spillover effects, of which the observed spatially lagged variables are indicators. This approach allows us to incorporate and test more information on spatial dependence and offers more flexibility than the representation in terms of Wy or Wx. Furthermore, we adapt the ML estimator included in the software package Mx to estimate SEMs with spatial dependence. We present illustrations based on Anselin’s Columbus, Ohio, crime dataset.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Pion Ltd, London in its journal Environment and Planning A.
Volume (Year): 40 (2008)
Issue (Month): 10 (October)
Contact details of provider:
Web page: http://www.pion.co.uk
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- An Liu & Henk Folmer & Johan Oud, 2011. "Estimating regression coefficients by W-based and latent variables spatial autoregressive models in the presence of spillovers from hotspots: evidence from Monte Carlo simulations," Letters in Spatial and Resource Sciences, Springer, vol. 4(1), pages 71-80, March.
- 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.
- Jesus Mur & Marcos Herrera & Manuel Ruiz, 2011. "Selecting the W Matrix. Parametric vs Nonparametric Approaches," ERSA conference papers ersa11p1055, European Regional Science Association.
- Herrera Gómez, Marcos & Cid, Juan Carlos & Paz, Jorge Augusto, 2012.
"Introducción a la econometría espacial: Una aplicación al estudio de la fecundidad en la Argentina usando R
[Introduction to Spatial Econometrics: An application to the study of fertility in Arg," MPRA Paper 41138, University Library of Munich, Germany.
- Bhattacharjee, Arnab & Jensen-Butler, Chris, 2011.
"Estimation of the Spatial Weights Matrix under Structural Constraints,"
SIRE Discussion Papers
2011-48, Scottish Institute for Research in Economics (SIRE).
- Arnab Bhattacharjee & Chris Jensen-Butler, 2011. "Estimation of the Spatial Weights Matrix under Structural Constraints," Dundee Discussion Papers in Economics 254, Economic Studies, University of Dundee.
- An Liu & Henk Folmer & Johan Oud, 2011. "W-based versus latent variables spatial autoregressive models: evidence from Monte Carlo simulations," The Annals of Regional Science, Springer, vol. 47(3), pages 619-639, December.
- Corrado, L. & Fingleton, B., 2011.
"Where is the economics in spatial econometrics?,"
SIRE Discussion Papers
2011-02, Scottish Institute for Research in Economics (SIRE).
- Luisa Corrado & Bernard Fingleton, 2011. "Where is the Economics in Spatial Econometrics?," SERC Discussion Papers 0071, Spatial Economics Research Centre, LSE.
- Luisa Corrado & Bernard Fingleton, 2011. "Where is the Economics in Spatial Econometrics?," Working Papers 1101, University of Strathclyde Business School, Department of Economics.
- Luisa Corrado & Bernard Fingleton, 2011. "Where is the economics in spatial econometrics?," LSE Research Online Documents on Economics 33581, London School of Economics and Political Science, LSE Library.
- An Liu & Inge Noback, 2011. "Determinants of regional female labour market participation in the Netherlands," The Annals of Regional Science, Springer, vol. 47(3), pages 641-658, December.
- Herrera Gómez, Marcos & Mur Lacambra, Jesús & Ruiz Marín, Manuel, 2011.
"¿Cuál matriz de pesos espaciales?. Un enfoque sobre selección de modelos
[Which spatial weighting matrix? An approach for model selection]," MPRA Paper 37585, University Library of Munich, Germany.
- Jesús Mur & Jean Paelinck, 2011. "Deriving the W-matrix via p-median complete correlation analysis of residuals," The Annals of Regional Science, Springer, vol. 47(2), pages 253-267, October.
- Michael Brady & Elena Irwin, 2011. "Accounting for Spatial Effects in Economic Models of Land Use: Recent Developments and Challenges Ahead," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(3), pages 487-509, March.
- Li, Zhengtao & Folmer, Henk & Xue, Jianhong, 2014. "To what extent does air pollution affect happiness? The case of the Jinchuan mining area, China," Ecological Economics, Elsevier, vol. 99(C), pages 88-99.
- Danny Czamanski & Henk Folmer, 2011. "Introduction: some new methods in regional science," The Annals of Regional Science, Springer, vol. 47(3), pages 493-497, December.
- Bhattacharjee, Arnab & Jensen-Butler, Chris, 2013. "Estimation of the spatial weights matrix under structural constraints," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 617-634.
- Jesus Mur & Antonio Paez, 2011. "Local weighting or the necessity of flexibility," ERSA conference papers ersa11p942, European Regional Science Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Neil Hammond).
If references are entirely missing, you can add them using this form.