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Spatial Correlation Robust Inference with Errors in Location or Distance

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  • Conley, Timothy G.

    (U of Chicago)

  • Molinari, Francesca

    (Cornell U)

Abstract

This paper presents results from a Monte Carlo study concerning inference with spatially dependent data. We investigate the impact of location/distance measurement errors upon the accuracy of parametric and nonparametric estimators of asymptotic variances. Nonparametric estimators are quite robust to such errors, method of moments estimators perform surprisingly well, and MLE estimators are very poor. We also present and evaluate a specification test based on a parametric bootstrap that has good power properties for the types of measurement error we consider.

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Bibliographic Info

Paper provided by Cornell University, Center for Analytic Economics in its series Working Papers with number 05-12.

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Date of creation: Feb 2005
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Handle: RePEc:ecl:corcae:05-12

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Cited by:
  1. Pede, Valerien O. & Florax, Raymond J.G.M. & Holt, Matthew T., 2008. "Modeling Non-Linear Spatial Dynamics: A Family of Spatial STAR Models and an Application to U.S. Economic Growth," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 6518, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Timothy Conley & Francesca Molinari, 2005. "Spatial correlation robust inference with Errors in Location or Distance," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP10/05, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  3. Kristie M. Engemann & Rubén Hernández-Murillo & Michael T. Owyang, 2011. "Regional aggregation in forecasting: an application to the Federal Reserve’s Eighth District," Review, Federal Reserve Bank of St. Louis, issue May, pages 207-222.
  4. Jesus Mur & Marcos Herrera & Manuel Ruiz, 2011. "Selecting the W Matrix. Parametric vs Nonparametric Approaches," ERSA conference papers ersa11p1055, European Regional Science Association.
  5. Arnab Bhattacharjee & Sean Holly, 2010. "Understanding Interactions in Social Networks and Committees," CDMA Working Paper Series, Centre for Dynamic Macroeconomic Analysis 201004, Centre for Dynamic Macroeconomic Analysis.
  6. Mann, Michael L. & Kaufmann, Robert K. & Bauer, Dana & Gopal, Sucharita & Vera-Diaz, Maria Del Carmen & Nepstad, Daniel & Merry, Frank & Kallay, Jennifer & Amacher, Gregory S., 2010. "The economics of cropland conversion in Amazonia: The importance of agricultural rent," Ecological Economics, Elsevier, Elsevier, vol. 69(7), pages 1503-1509, May.
  7. Bhattacharjee, A. & Holly, S., 2010. "Structural Interactions in Spatial Panels," Cambridge Working Papers in Economics 1004, Faculty of Economics, University of Cambridge.
  8. Steve Gibbons & Henry G. Overman & Eleonora Patacchini, 2014. "Spatial Methods," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0162, Spatial Economics Research Centre, LSE.
  9. Gianfranco Piras, . "sphet: Spatial Models with Heteroskedastic Innovations in R," Journal of Statistical Software, American Statistical Association, American Statistical Association, vol. 35(i01).
  10. Kim, Min Seong & Sun, Yixiao, 2011. "Spatial heteroskedasticity and autocorrelation consistent estimation of covariance matrix," Journal of Econometrics, Elsevier, Elsevier, vol. 160(2), pages 349-371, February.
  11. Alan Barreca & Price V. Fishback & Shawn Kantor, 2011. "Agricultural Policy, Migration, and Malaria in the 1930s United States," NBER Working Papers 17526, National Bureau of Economic Research, Inc.
  12. Jesus Mur & Antonio Paez, 2011. "Local weighting or the necessity of flexibility," ERSA conference papers ersa11p942, European Regional Science Association.
  13. Cotteleer, Geerte & Gardebroek, Cornelis, 2006. "Bargaining and market power in a GIS-based hedonic pricing model of the agricultural land market," 2006 Annual meeting, July 23-26, Long Beach, CA, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21255, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  14. 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.
  15. Barreca, Alan I. & Fishback, Price V. & Kantor, Shawn, 2012. "Agricultural policy, migration, and malaria in the United States in the 1930s," Explorations in Economic History, Elsevier, Elsevier, vol. 49(4), pages 381-398.

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