IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/56678.html
   My bibliography  Save this paper

Testing Spatial Causality in Cross-section Data

Author

Listed:
  • Herrera Gómez, Marcos
  • Ruiz Marín, Manuel
  • Mur Lacambra, Jesús

Abstract

The paper shows a new non-parametric test, based on symbolic entropy, which permits detect spatial causality in cross-section data. The test is robust to the functional form of the relation and has a good behaviour in samples of medium to large size. We illustrate the use of test with the case of relationship between migration and unemployment, using data on 3,108 U.S. counties for the period 2003-2008.

Suggested Citation

  • Herrera Gómez, Marcos & Ruiz Marín, Manuel & Mur Lacambra, Jesús, 2014. "Testing Spatial Causality in Cross-section Data," MPRA Paper 56678, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56678
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/56678/1/MPRA_paper_56678.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael Beenstock & Daniel Felsenstein, 2007. "Spatial Vector Autoregressions," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(2), pages 167-196.
    2. Zellner, Arnold, 1988. "Causality and causal laws in economics," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 7-21.
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    4. Manuel Ruiz & Fernando López & Antonio Páez, 2010. "Testing for spatial association of qualitative data using symbolic dynamics," Journal of Geographical Systems, Springer, vol. 12(3), pages 281-309, September.
    5. Jan Mutl, 2002. "Panel VAR Models with Spatial Dependence," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A5-2, International Conferences on Panel Data.
    6. López, Fernando & Matilla-García, Mariano & Mur, Jesús & Marín, Manuel Ruiz, 2010. "A non-parametric spatial independence test using symbolic entropy," Regional Science and Urban Economics, Elsevier, vol. 40(2-3), pages 106-115, May.
    7. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-755, September.
    8. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    9. James J. Heckman, 2000. "Causal Parameters and Policy Analysis in Economics: A Twentieth Century Retrospective," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(1), pages 45-97.
    10. Matilla-García, Mariano & Ruiz Marín, Manuel, 2009. "Detection of non-linear structure in time series," Economics Letters, Elsevier, vol. 105(1), pages 1-6, October.
    11. Matilla-Garci­a, Mariano & Ruiz Mari­n, Manuel, 2008. "A non-parametric independence test using permutation entropy," Journal of Econometrics, Elsevier, vol. 144(1), pages 139-155, May.
    12. Mark D. Partridge & Marlon Boarnet & Steven Brakman & Gianmarco Ottaviano, 2012. "Introduction: Whither Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 167-171, May.
    13. Eve Chiapello & A. Hurand, 2011. "Contribution," Post-Print hal-00681170, HAL.
    14. Cartwright, Nancy, 1995. "Probabilities and experiments," Journal of Econometrics, Elsevier, vol. 67(1), pages 47-59, May.
    15. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-235, May.
    16. Valter Giacinto, 2010. "On vector autoregressive modeling in space and time," Journal of Geographical Systems, Springer, vol. 12(2), pages 125-154, June.
    17. Kelejian, Harry H. & Prucha, Ingmar R., 2007. "The relative efficiencies of various predictors in spatial econometric models containing spatial lags," Regional Science and Urban Economics, Elsevier, vol. 37(3), pages 363-374, May.
    18. Marcos Herrera & Manuel Ruiz & Jesús Mur, 2013. "Detecting Dependence Between Spatial Processes," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(4), pages 469-497, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vicente Rios & Pedro Pascual Arzoz & BelÉn iraizoz Apezteguia, 2016. "Development Differentials and Interaction Effects in the European Regions: A Study Based on the Regional Lisbon Index," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(3), pages 347-364, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marcos Herrera & Jesús Mur & Manuel Ruiz, 2016. "Detecting causal relationships between spatial processes," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 577-594, August.
    2. Herrera Gómez, Marcos, 2010. "Causalidad Espacial. Enfoque No Paramétrico [Spatial Causality. Non-Parametric Approach]," MPRA Paper 61326, University Library of Munich, Germany.
    3. Marcos Herrera & Manuel Ruiz & Jesús Mur, 2013. "Detecting Dependence Between Spatial Processes," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(4), pages 469-497, February.
    4. Miguel A. Márquez & Julián Ramajo & Geoffrey JD. Hewings, 2015. "Regional growth and spatial spillovers: Evidence from an SpVAR for the Spanish regions," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 1-18, November.
    5. López-Hernández , Fernando A. & Artal-Tur, Andrés & Maté-Sánchez-Val, M. Luz, 2011. "Identifying nonlinear spatial dependence patterns by using non-parametric tests: Evidence for the European Union," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 21, pages 19-36.
    6. Andersson, Björn, 1999. "On the Causality Between Saving and Growth: Long- and Short-Run Dynamics and Country Heterogeneity," Working Paper Series 1999:18, Uppsala University, Department of Economics.
    7. Elsinger, Helmut, 2013. "Comment on: A non-parametric spatial independence test using symbolic entropy," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 838-840.
    8. Zhenhua Chen & Kingsley E. Haynes, 2015. "Regional Impact of Public Transportation Infrastructure," Economic Development Quarterly, , vol. 29(3), pages 275-291, August.
    9. Utku Utkulu & Durmus Özdemir, 2005. "Does Trade Liberalization Cause a Long Run Economic Growth in Turkey," Economic Change and Restructuring, Springer, vol. 37(3), pages 245-266, September.
    10. Birgitta Rabe & Mark P. Taylor, 2012. "Differences in Opportunities? Wage, Employment and House-Price Effects on Migration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(6), pages 831-855, December.
    11. Sven Wardenburg & Thomas Brenner, 2021. "Analysing the spatio-temporal diffusion of economic change - advanced statistical approach and exemplary application," Working Papers on Innovation and Space 2021-01, Philipps University Marburg, Department of Geography.
    12. Peter Adams & Michael D. Hurd & Daniel L. McFadden & Angela Merrill & Tiago Ribeiro, 2004. "Healthy, Wealthy, and Wise? Tests for Direct Causal Paths between Health and Socioeconomic Status," NBER Chapters, in: Perspectives on the Economics of Aging, pages 415-526, National Bureau of Economic Research, Inc.
    13. Atella, Vincenzo & Braione, Manuela & Ferrara, Giancarlo & Resce, Giuliano, 2023. "Cohesion Policy Funds and local government autonomy: Evidence from Italian municipalities," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    14. Kathleen Day & Stanley Winer, 2006. "Policy-induced internal migration: An empirical investigation of the Canadian case," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(5), pages 535-564, September.
    15. Guilherme Resende & Alexandre Carvalho & Patrícia Sakowski & Túlio Cravo, 2016. "Evaluating multiple spatial dimensions of economic growth in Brazil using spatial panel data models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 1-31, January.
    16. Weiß, Christian H. & Ruiz Marín, Manuel & Keller, Karsten & Matilla-García, Mariano, 2022. "Non-parametric analysis of serial dependence in time series using ordinal patterns," Computational Statistics & Data Analysis, Elsevier, vol. 168(C).
    17. Stephan Russek, 2010. "Differential labour mobility and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 587-606, August.
    18. Carlos Usabiaga & Pablo Álvarez de Toledo & Fernando Núñez, 2013. "Labour Market Segmentation, Clusters, Mobility And Unemployment Duration With Individual Microdata," EcoMod2013 5688, EcoMod.
    19. repec:ebl:ecbull:v:3:y:2008:i:61:p:1-14 is not listed on IDEAS
    20. Steven M. Shugan, 2007. "—Causality, Unintended Consequences and Deducing Shared Causes," Marketing Science, INFORMS, vol. 26(6), pages 731-741, 11-12.
    21. G Di Pietro, 2005. "On Migration and Unemployment: Evidence from Italian Graduates," Economic Issues Journal Articles, Economic Issues, vol. 10(2), pages 11-28, September.

    More about this item

    Keywords

    Spatial Econometrics; Causality; Non-parametric method;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:56678. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.