Identifying Nonlinearities in Spatial Autoregressive Models ∗


In spatial autoregressive models, the functional form of autocorrelation is assumed to be linear. In this paper, we propose a simple semiparametric procedure, based on the Yatchew’s (1997) semiparametric partial linear model, that does not impose this restriction. Simple simulations show that this model outperforms traditional SAR estimation when… (More)

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