University of Leicester
Browse
A Test to Select between Spatial Weighting Matrices (1).pdf (907.34 kB)

A Test to Select between Spatial Weighting Matrices

Download (907.34 kB)
journal contribution
posted on 2023-01-06, 16:22 authored by Stephen Hall, George tavlas, Deborah Gefang

There exist a number of ways of selecting the best spatial weighting matrix in a spatial regression framework. But these methods all work under the assumption that there is only one matrix in the final model and they simply aim to pick the best one. We propose an encompassing tests which allows for the possibility that the final preferred model may have two or more spatial weighting matrices. We validate the proposed test through a Monte Carlo study. We then illustrate the test by applying it to a two-equation simultaneous system determining sovereign bond ratings and spreads for two groups comprising northern and Southern Euro-area countries.

History

Author affiliation

School of Business, University of Leicester

Version

  • AM (Accepted Manuscript)

Published in

journal of spatial econometrics

Volume

4

Issue

1

Publisher

Springer

issn

2662-2998

Copyright date

2022

Available date

2023-12-06

Language

en

Usage metrics

    University of Leicester Publications

    Categories

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC