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Locally most powerful tests for spatial interactions in the simultaneous SAR Tobit model

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  • Qu, Xi
  • Lee, Lung-fei

Abstract

The simultaneous SAR Tobit model is useful to analyze censored data in a spatial or social interaction setting. This paper focuses on three classical tests of spatial interactions in the simultaneous SAR Tobit model. We derive the asymptotic distributions of those three tests under the null and the local alternative hypotheses, establish their asymptotic equivalence and local efficiency, and study finite sample properties by the Monte Carlo simulation. The tests are applied to an empirical example on the presence of competition among school districts on school district income tax in Iowa.

Suggested Citation

  • Qu, Xi & Lee, Lung-fei, 2013. "Locally most powerful tests for spatial interactions in the simultaneous SAR Tobit model," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 307-321.
  • Handle: RePEc:eee:regeco:v:43:y:2013:i:2:p:307-321
    DOI: 10.1016/j.regsciurbeco.2012.07.010
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    References listed on IDEAS

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    3. Qu, Xi & Lee, Lung-fei, 2012. "LM tests for spatial correlation in spatial models with limited dependent variables," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 430-445.
    4. Robert Jong & Ana María Herrera, 2011. "Dynamic Censored Regression and the Open Market Desk Reaction Function," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 29(2), pages 228-237, April.
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    Citations

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    Cited by:

    1. Anna Gloria Billé & Samantha Leorato, 2017. "Quasi-ML estimation, Marginal Effects and Asymptotics for Spatial Autoregressive Nonlinear Models," BEMPS - Bozen Economics & Management Paper Series BEMPS44, Faculty of Economics and Management at the Free University of Bozen.
    2. repec:eee:regeco:v:64:y:2017:i:c:p:81-97 is not listed on IDEAS
    3. Kim, Changjoo & Parent, Olivier, 2016. "Modeling individual travel behaviors based on intra-household interactions," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 1-11.
    4. Xu, Xingbai & Lee, Lung-fei, 2015. "A spatial autoregressive model with a nonlinear transformation of the dependent variable," Journal of Econometrics, Elsevier, vol. 186(1), pages 1-18.
    5. repec:eee:regeco:v:67:y:2017:i:c:p:135-147 is not listed on IDEAS
    6. repec:bla:worlde:v:39:y:2016:i:12:p:2046-2073 is not listed on IDEAS
    7. Xu, Xingbai & Lee, Lung-fei, 2015. "Maximum likelihood estimation of a spatial autoregressive Tobit model," Journal of Econometrics, Elsevier, vol. 188(1), pages 264-280.

    More about this item

    Keywords

    Spatial Tobit model; Three classical tests; Locally most powerful;

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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