MULTIPARAMETRIC AND HIERARCHICAL SPATIAL AUTOREGRESSIVE MODELS: THE EVALUATION OF THE MISSPECIFICATION OF SPATIAL EFFECTS USING A MONTE CARLO SIMULATION

Authors

  • Edyta Łaszkiewicz University of Lodz, Faculty of Economics and Sociology, Departament of Spatial Econometrics.

Keywords:

Spatial model, hierarchical model, Monte Carlo, Bayesian estimation.

Abstract

The aim of this paper is to evaluate the spatial and hierarchical models for data generating processes with spatial heterogeneity and spatial dependence at the higher level. The simulation for the m-SAR and HSAR models was used to discuss the consequences of spatial misspecification. We noticed that the misspecification of spatial homogeneity or heterogeneity in both models affects i.a. the estimated parameter for spatial interactions at the individual level. Applying a m-SAR model for spatially heterogeneous processes causes the overestimation of the spatial interaction parameter.

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Author Biography

Edyta Łaszkiewicz, University of Lodz, Faculty of Economics and Sociology, Departament of Spatial Econometrics.

Assistant

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Published

2015-05-18

How to Cite

Łaszkiewicz, E. (2015). MULTIPARAMETRIC AND HIERARCHICAL SPATIAL AUTOREGRESSIVE MODELS: THE EVALUATION OF THE MISSPECIFICATION OF SPATIAL EFFECTS USING A MONTE CARLO SIMULATION. Acta Universitatis Lodziensis. Folia Oeconomica, 5(307). Retrieved from https://czasopisma.uni.lodz.pl/foe/article/view/335

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Section

Regional econometrics

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