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The Effect Of Omitted Spatial Effects And Social Dependence In The Modelling Of Household Expenditure For Fruits And Vegetables

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Listed:
  • Łaszkiewicz Edyta

    (University of Lodz, Faculty of Economics and Sociology, Department of Spatial Econometrics)

  • Dong Guanpeng

    (Ph.D., University of Sheffield, Sheffield Methods Institute)

  • Harris Richard

    (Full Professor at the University of Bristol, School of Geographical Sciences)

Abstract

As is well known, ignoring spatial heterogeneity leads to biased parameter estimates, while omitting the spatial lag of a dependent variable results in biasness and inconsistency (Anselin, 1988). However, the common approach to analysing households’ expenditures is to ignore the potential spatial effects and social dependence. In light of this, the aim of this paper is to examine the consequences of omitting the spatial effects as well as social dependence in households’ expenditures.

Suggested Citation

  • Łaszkiewicz Edyta & Dong Guanpeng & Harris Richard, 2014. "The Effect Of Omitted Spatial Effects And Social Dependence In The Modelling Of Household Expenditure For Fruits And Vegetables," Comparative Economic Research, Sciendo, vol. 17(4), pages 155-172, December.
    • Handle: RePEc:vrs:coecre:v:17:y:2014:i:4:p:155-172:n:10
    DOI: 10.2478/cer-2014-0038
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    References listed on IDEAS

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    1. Luisa Corrado & Bernard Fingleton, 2012. "Where Is The Economics In Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 210-239, May.
    2. Baltagi, Badi H. & Fingleton, Bernard & Pirotte, Alain, 2014. "Spatial lag models with nested random effects: An instrumental variable procedure with an application to English house prices," Journal of Urban Economics, Elsevier, vol. 80(C), pages 76-86.
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    Cited by:

    1. Guanpeng Dong & Richard Harris & Kelvyn Jones & Jianhui Yu, 2015. "Multilevel Modelling with Spatial Interaction Effects with Application to an Emerging Land Market in Beijing, China," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-18, June.

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