A Hausman Test for Spatial Regression Model
Essays in Honor of Jerry Hausman
ISBN: 978-1-78190-307-0, eISBN: 978-1-78190-308-7
Publication date: 19 December 2012
Abstract
In this chapter we investigate the finite sample properties of a Hausman test for the spatial error model (SEM) proposed by Pace and LeSage (2008). In particular, we demonstrate that the power of their test could be very low against a natural alternative like the spatial autoregressive (SAR) model.
Keywords
Citation
Sen, M., Bera, A.K. and Kao, Y.-H. (2012), "A Hausman Test for Spatial Regression Model", Baltagi, B.H., Carter Hill, R., Newey, W.K. and White, H.L. (Ed.) Essays in Honor of Jerry Hausman (Advances in Econometrics, Vol. 29), Emerald Group Publishing Limited, Leeds, pp. 547-559. https://doi.org/10.1108/S0731-9053(2012)0000029023
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited