Abstract
This paper analyzes redundant paths in spatial lag operators. It is shown that the sample size and the order of spatial lag largely determine the occurrence rate of redundant paths in a spatial lag operator. A mathematical expression for the occurrence rate is derived. In a simulation study it is shown that the occurrence rate is a good measure for the severity of the error introduced in spatial models when one fails to eliminate redundant paths from the spatial lag operator.
Original language | English |
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Pages (from-to) | 317-333 |
Journal | Journal of Econometrics |
Volume | 82 |
Issue number | 25 |
DOIs | |
Publication status | Published - 1998 |
Keywords
- Redundant paths
- Spatial systems
- Spatial algorithms
- Spatial economics
- Spatial lag