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Efficient Estimation of the SemiparametricSpatial Autoregressive Model

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Author Info
Peter M Robinson
Abstract

Efficient semiparametric and parametric estimates are developed for aspatial autoregressive model, containing nonstochastic explanatoryvariables and innovations suspected to be non-normal. The main stress ison the case of distribution of unknown, nonparametric, form, where seriesnonparametric estimates of the score function are employed in adaptiveestimates of parameters of interest. These estimates are as efficient asones based on a correct form, in particular they are more efficient thanpseudo-Gaussian maximum likelihood estimates at non-Gaussiandistributions. Two different adaptive estimates are considered. One entails astringent condition on the spatial weight matrix, and is suitable only whenobservations have substantially many "neighbours". The other adaptiveestimate relaxes this requirement, at the expense of alternative conditionsand possible computational expense. A Monte Carlo study of finite sampleperformance is included.

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Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Econometrics Paper Series with number /2007/515.

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Date of creation: Feb 2007
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Handle: RePEc:cep:stiecm:/2007/515

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Related research
Keywords: Spatial autoregression Efficient estimation Adaptive estimation Simultaneity bias.© The author. All rights reserved. Short sections of text not to exceed two paragraphs may be quoted without explicit permission provided that full credit including © notice isgiven to the source.

Find related papers by JEL classification:
C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Estimation
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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This page was last updated on 2008-9-20.


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