Titre :

Interaction matrix selection in spatial econometrics with an application to growth theory

Auteur(s) :

Debarsy, Nicolas [Auteur]
Centre National de la Recherche Scientifique [CNRS]
Lille économie management - UMR 9221 [LEM]
Ertur, Cem [Auteur]
Laboratoire d'Économie d'Orleans [FRE2014] [LEO]

Titre de la revue :

Regional Science and Urban Economics

Pagination :

49-69

Éditeur :

Elsevier

Date de publication :

2019-03

ISSN :

0166-0462

Mot(s)-clé(s) en anglais :

Bootstrap
GMM
Interaction matrix
J tests
Non-nested models
Heteroscedasticity
Spatial autoregressive models
Heteroskedasticity

Discipline(s) HAL :

Sciences de l'Homme et Société/Economies et finances

Résumé en anglais : [en]

The interaction matrix, or spatial weight matrix, is the fundamental tool to model cross-sectional interdependence between observations in spatial econometric models. However, it is most of the time not derived from theory, ...
Lire la suite >The interaction matrix, or spatial weight matrix, is the fundamental tool to model cross-sectional interdependence between observations in spatial econometric models. However, it is most of the time not derived from theory, as it should be ideally, but chosen on an ad hoc basis. In this paper, we propose a modified version of the J test to formally select the interaction matrix. Our methodology is based on the application of the robust against unknown heteroskedasticity GMM estimation method, developed by Lin & Lee (2010). We then implement the testing procedure developed by Hagemann (2012) to overcome the decision problem inherent to non-nested models tests. An application is presented for the Schumpeterian growth model with worldwide interactions (Ertur & Koch 2011) using three different types of interaction matrix: genetic distance, linguistic distance and bilateral trade flows and we find that the interaction matrix based on trade flows is the most adequate. Furthermore, we propose a network based innovative representation of spatial econometric results.Lire moins >

Langue :

Anglais

Vulgarisation :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL