| Title: |
LM Tests for Functional Form and Spatial Correlation |
| Authors: |
Badi H. Baltagi; Dong Li; Jel Code C |
| Contributors: |
The Pennsylvania State University CiteSeerX Archives |
| Source: |
http://fmwww.bc.edu/RePEc/es2000/0099.pdf. |
| Publication Year: |
1999 |
| Collection: |
CiteSeerX |
| Subject Terms: |
Box-Cox transformation; Spatial dependence; Lagrangian Multiplier; Local Misspecification |
| Description: |
This paper derives Lagrangian Multiplier tests to jointly test for functional form and spatial error correlation. In particular, this paper tests for linear and loglinear models with no spatial error dependence against a more general Box-Cox model with spatial error correlation. Conditional LM tests and modified Rao-Score tests that guard against local misspecification are also derived. These tests are easy to implement and are illustrated using Anselin’s (1988) crime data. The performance of these tests are also compared using Monte The choice of functional form is important especially when nonlinearity is suspected, see Lendent (1986) for a model of urbanization with nonlinear migration flows; Craig, Kohlhase and Papell (1991) who were concerned with the nonlinear structure of hedonic housing price regressions; Elad, Clifton and Epperson (1994) for a nonlinear hedonic model of the price of farmland in Georgia. |
| Document Type: |
text |
| File Description: |
application/pdf |
| Language: |
English |
| Relation: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.198.6004; http://fmwww.bc.edu/RePEc/es2000/0099.pdf |
| Availability: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.198.6004; http://fmwww.bc.edu/RePEc/es2000/0099.pdf |
| Rights: |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: |
edsbas.3823B403 |
| Database: |
BASE |