Herrera Gómez, Marcos and Mur Lacambra, Jesús and Ruiz Marín, Manuel (2012): Selecting the Most Adequate Spatial Weighting Matrix:A Study on Criteria.

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Abstract
In spatial econometrics, it is customary to specify a weighting matrix, the socalled W matrix, by choosing one matrix from a finite set of matrices. The decision is extremely important because, if the W matrix is misspecified, the estimates are likely to be biased and inconsistent. However, the procedure to select W is not well defined and, usually, it reflects the judgments of the user. In this paper, we revise the literature looking for criteria to help with this problem. Also, a new nonparametric procedure is introduced. Our proposal is based on a measure of the information, conditional entropy. We compare these alternatives by means of a Monte Carlo experiment.
Item Type:  MPRA Paper 

Original Title:  Selecting the Most Adequate Spatial Weighting Matrix:A Study on Criteria 
Language:  English 
Keywords:  Spatial weighting matrix; Nonparametric procedure; Conditional entropy 
Subjects:  C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General > C12  Hypothesis Testing: General C  Mathematical and Quantitative Methods > C2  Single Equation Models ; Single Variables > C21  CrossSectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions C  Mathematical and Quantitative Methods > C5  Econometric Modeling > C52  Model Evaluation, Validation, and Selection 
Item ID:  73700 
Depositing User:  marcos herrera 
Date Deposited:  15 Sep 2016 10:43 
Last Modified:  26 Sep 2019 11:43 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/73700 