Omitted Factors and Spatial lags in the Dependent Variable
Harry H. Kelejian
,
1
(
7
)
Letters in Spatial and Resource Sciences
23-33
March
2014
Abstract
It’s been suggested a number of times that the significance of the estimated coefficient of the spatial lag of the dependent variable may be the result of an omitted common factor which may be spatially correlated-see, among others, (Gibbons and Overman in J Reg Sci 52:172–191 2012 and Corrado and Fingleton in J Reg Sci 52(2):210–239 2012).