A Spatial J-Test for Model Specification Against a Single or a Set of Non-nested Alternatives
In this paper we suggest a J-type test for a given spatial model against one or more non-nested alternatives. The considered models can, but need not, contain spatial lags in both the dependent variable and disturbance term. The test is computationally simple and quite intuitive. Our suggested test is based on formal large sample results which account for triangular arrays.