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Consistent specification testing under spatial dependence

Abhimanyu Gupta, Xi Qu

arXiv 25 Jan 2021 · Econometrics · publishedEconometric Theory (2022) · 9 citations (OpenAlex)

arXiv:2101.10255 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a series-based nonparametric specification test for a regression function when data are spatially dependent, the `space' being of a general economic or social nature. Dependence can be parametric, parametric with increasing dimension, semiparametric or any combination thereof, thus covering a vast variety of settings. These include spatial error models of varying types and levels of complexity. Under a new smooth spatial dependence condition, our test statistic is asymptotically standard normal. To prove the latter property, we establish a central limit theorem for quadratic forms in linear processes in an increasing dimension setting. Finite sample performance is investigated in a simulation study, with a bootstrap method also justified and illustrated, and empirical examples illustrate the test with real-world data.

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69
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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
1Hong, Y. and H. White (1995) Consistent specification testing via nonparametric series regression1.00084100%
2Bloom, N., M. Schankerman, and J. van Reenen (2013) Identifying technology pillovers and product market rivalry1.00073100%
3Lee, J. and P. M. Robinson (2016) Series estimation under cross-sectional dependence1.00054100%
4Delgado, M. and P. M. Robinson (2015) Non-nested testing of spatial correlation0.9209478%
5Gupta, A. and P. M. Robinson (2018) Pseudo maximum likelihood estimation of spatial autoregressive models with increasing dimension self0.88810670%
6König, M. D., D. Rohner, M. Thoenig, and F. Zilibotti (2017) Networks in conflict: Theory and evidence from the Great War of Africa0.87452100%
7Chen, X (2007) Large sample sieve estimation of semi-nonparametric models, Volume 6B, Chapter 76, pp.\ 5549–56320.84333100%
8Robinson, P. M (2011) Asymptotic theory for nonparametric regression with spatial data0.84333100%
9Su, L. and X. Qu (2017) Specification test for spatial autoregressive models0.84333100%
10Lee, L. F (2004) Asymptotic distributions of quasi-maximum likelihood estimators for spatial autoregressive models0.81142100%

Showing the top 10 of 69 scored citations.

Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Testing linearity of spatial interaction functions à la Ramsey0.40511
2Wald inference on varying coefficients0.40511