RT info:eu-repo/semantics/article
T1 The likelihood ratio test of common factors under non-ideal conditions
T2 El Ratio de Verosimilitudes de Factores Comunes bajo condiciones no ideales
A1 Angulo Garijo, Ana María
A1 Mur lacambra, Jesús Domingo
K1 Likelihood ratio test of common factor
K1 Heteroscedasticity
K1 Nonnormality
K1 Endogeneity
K1 Non-linearity
K1 Contraste de ratio de verosimilitudes de factores comunes
K1 Heterocedasticitidad
K1 No normalidad
K1 Endogeneidad
K1 No linealidad
K1 Economía
K1 Economics
K1 Geografía
K1 Geography
K1 Sociología
K1 Sociology
AB The spatial Durbin model occupies an interesting position in spatialeconometrics. It is the reduced form of a model with cross-sectional dependence in the errors and it may be used as the nesting equation in a more general approach of model selection. Specifically, in this equation we can obtain the Likelihood Ratio test of Common Factors (LRCOM). This test has good properties if the model is correctly specified, as shown in Mur and Angulo (2006). However, as far as weknow, there is no literature in relation to the behaviour of the test under non-ideal conditions, which is the purpose of the paper. Specifically, we study the performance of the test in the case of heteroscedasticity, non-normality, endogeneity, dense weighting matrices and non-linearity. Our results offer a positive view of theLikelihood Ratio test of Common Factors, which appears to be a useful technique in the toolbox of spatial econometrics.
PB Asociación Española de Ciencia Regional (AECR)
SN 2340-2717
YR 2011
FD 2011
LK http://hdl.handle.net/10017/27438
UL http://hdl.handle.net/10017/27438
LA eng
DS MINDS@UW
RD 01-may-2024