The Scan-LM to Test Instability in the Constant Coefficient of Spatial Autoregressive Models

This paper presents a test based on the principle of Lagrange Multipliers to identify spatial instability in constant coefficient regression models including substantive dependence. The has been adapted Scan methodology. Its main advantage is that it identifies areas with differential behavior without need provide information about their location, shape, or size. study shows utility test, reconsidering results obtained by Mur et al.(2008) distribution per capita income European regions.