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A Review of Cross-Sectional Matrix Exponential Spatial Models

Ye Yang, Osman Dogan, Suleyman Taspinar, Fei Jin

arXiv 24 Nov 2023 · Econometrics

arXiv:2311.14813 · PDF · DOI · OpenAlex · Extracted main text

Abstract

The matrix exponential spatial models exhibit similarities to the conventional spatial autoregressive model in spatial econometrics but offer analytical, computational, and interpretive advantages. This paper provides a comprehensive review of the literature on the estimation, inference, and model selection approaches for the cross-sectional matrix exponential spatial models. We discuss summary measures for the marginal effects of regressors and detail the matrix-vector product method for efficient estimation. Our aim is not only to summarize the main findings from the spatial econometric literature but also to make them more accessible to applied researchers. Additionally, we contribute to the literature by introducing some new results. We propose an M-estimation approach for models with heteroskedastic error terms and demonstrate that the resulting M-estimator is consistent and has an asymptotic normal distribution. We also consider some new results for model selection exercises. In a Monte Carlo study, we examine the finite sample properties of various estimators from the literature alongside the M-estimator.

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62
references
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in-text mentions
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distinct cited
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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
1LeSage, J. P. and Pace, R. K (2009) Introduction to Spatial Econometrics1.000115100%
2LeSage, J. P. and Pace, R. K (2007) A matrix exponential spatial specification1.00084100%
3Debarsy, N., Jin, F., and Lee, L.-F (2015) Large sample properties of the matrix exponential spatial specification with an application to FDI self0.94112783%
4Kelejian, H. H. and Prucha, I (2010) Specification and estimation of spatial autoregressive models with autoregressive and heteroskedastic disturbances0.9285580%
5Han, X. and Lee, L.-f (2013) Model selection using J-test for the spatial autoregressive model vs. the matrix exponential spatial model0.87482100%
6Yang, Y., Dogan, O., and Taspinar, S (2022) Model selection and model averaging for matrix exponential spatial models self0.87482100%
7Liu, T. and Lee, L.-f (2019) A likelihood ratio test for spatial model selection0.87462100%
8Jin, F. and Lee, L.-F (2018) Irregular N2SLS and LASSO estimation of the matrix exponential spatial specification model self0.87452100%
9Yang, Y., Dogan, O., and Taspinar, S (2021) Fast estimation of matrix exponential spatial models self0.87452100%
10Kelejian, H. H. and Prucha, I. R (2001) On the asymptotic distribution of the moran I test statistic with applications0.84333100%

Showing the top 10 of 62 scored citations.