Theses and Dissertations
Issuing Body
Mississippi State University
Advisor
Harri, Ardian
Committee Member
Li, Xiaofei
Committee Member
Park, Eunchun
Date of Degree
12-10-2021
Document Type
Graduate Thesis - Open Access
Major
Agricultural Economics
Degree Name
Master of Science (M.S.)
College
College of Agriculture and Life Sciences
Department
Department of Agricultural Economics
Abstract
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 is accomplished by using a disaggregate point-type data generating process which is then aggregated into polygon-type data. Monte Carlo simulations show that current specifications of �� used in maximum likelihood estimation for the spatial error model perform poorly. Additionally, the estimated spatial variance-covariance matrix outperforms the traditional specifications of ��.
Recommended Citation
Kent, Cannon, "Efficiency of weights matrix specification in the spatial error model" (2021). Theses and Dissertations. 5311.
https://scholarsjunction.msstate.edu/td/5311