Identifying nonlinear spatial dependence patterns by using non-parametric tests: Evidence for the European Union
AbstractAccounting for spatial structures in econometric studies is becomingan issue of special interest, given the presence of spatial dependence and spatialheterogeneity problems arising in data. Generally, researchers have been employingparametric tests for detecting spatial dependence structures: Moran’s I and LM testsin spatial regressions are the most popular approaches employed in literature.However,this approach remains misleading in the presence of nonlinear spatial structures,inducing important biases in the estimation of the parameters of the model.In this paper we illustrate that issue by applying three non-parametrical proposalswhen testing for spatial structure in data. Empirical findings for the regions of theEuropean Union show important failures of traditional parametric tests if nonlinearitiescharacterise geo-referenced data. Our results clearly recommend employing newfamilies of tests, beyond parametrical ones, when working in such environments.
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Bibliographic InfoArticle provided by Asociación Española de Ciencia Regional in its journal Investigaciones Regionales.
Volume (Year): (2011)
Issue (Month): 21 ()
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Nonlinear processes; non-parametric tests; spatial dependence; spatial filters; EU regions;
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
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