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Agricultural Economics

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Mississippi State University

Weights matrix

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Efficiency Of Weights Matrix Specification In The Spatial Error Model, Cannon Kent Dec 2021

Efficiency Of Weights Matrix Specification In The Spatial Error Model, Cannon Kent

Theses and Dissertations

This study investigates and quantifies the effect of different specifications of the spatial weights matrix (��) on estimates and inferences in the context of a regression model using the lattice perspective with polygon-type data. The study also investigates an alternative to the specification of �� by estimating a spatial variance-covariance matrix based on known features of the spatial data. Previous literature has addressed the a priori construction of �� and selection criteria but assumes point-type data. This study’s primary contribution is the setup of a true and known benchmark that allows the comparison of the different specifications of ��. This …