Estimation Problems in Models With Spatial Weighting Matrices Which Have Blocks of Equal Elements
Harry H. Kelejian, Ingmar Prucha, and Yevgeny Yuzefovich
,
3
(
46
)
Journal of Regional Science
507-515
August
2006
JRS46(2006).pdf172.06 KB
Abstract
Spatial models whose weighting matrices have blocks of equal elements might be considered if units are viewed as equally distant within certain neighborhoods, but unrelated between neighborhoods. We give exact small sample results for such models that contain a spatially lagged-dependent variable. We consider cases in which the data relate to one or more panels, for example, villages, schools, etc. Our results are consistent with large sample results given in Kelejian and Prucha (2002) but indicate a variety of issues they did not consider.