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Efficient closed-form estimation of large spatial autoregressions

Abhimanyu Gupta

arXiv 27 Aug 2020 · Econometrics · publishedJournal of Econometrics (2021) · 1 citations (OpenAlex)

arXiv:2008.12395 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Newton-step approximations to pseudo maximum likelihood estimates of spatial autoregressive models with a large number of parameters are examined, in the sense that the parameter space grows slowly as a function of sample size. These have the same asymptotic efficiency properties as maximum likelihood under Gaussianity but are of closed form. Hence they are computationally simple and free from compactness assumptions, thereby avoiding two notorious pitfalls of implicitly defined estimates of large spatial autoregressions. For an initial least squares estimate, the Newton step can also lead to weaker regularity conditions for a central limit theorem than those extant in the literature. A simulation study demonstrates excellent finite sample gains from Newton iterations, especially in large multiparameter models for which grid search is costly. A small empirical illustration shows improvements in estimation precision with real data.

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Gupta, A. and P. M. Robinson (2015) Inference on higher-order spatial autoregressive models with increasingly many parameters self1.000184100%
2Gupta, A. and P. M. Robinson (2018) Pseudo maximum likelihood estimation of spatial autoregressive models with increasing dimension self1.000143100%
3Lee, L. F (2002) Consistency and efficiency of least squares estimation for mixed regressive, spatial autoregressive models0.874102100%
4Lee, L. F (2004) Asymptotic distributions of quasi-maximum likelihood estimators for spatial autoregressive models0.81142100%
5Robinson, P. M (1988) The stochastic difference between econometric statistics0.73732100%
6Robinson, P. M (2005) Efficiency improvements in inference on stationary and nonstationary fractional time series0.64422100%
7Case, A. C (1991) Spatial patterns in household demand0.64422100%
8Robinson, P. M (2010) Efficient estimation of the semiparametric spatial autoregressive model0.64422100%
9Andrews, D. W. K (1997) A stopping rule for the computation of Generalized Method of Moments estimators0.40511100%
10Chudik, A. and M. H. Pesaran (2015) Large panel data models with cross-sectional dependence: A survey0.40511100%

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arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Quasi-Score Matching Estimation for Spatial Autoregressive Model with Random Weights Matrix and Regressors0.84333