Rao’s score test provides an extremely useful framework for developing diagnostics against hypotheses that re+ect cross-sectional or spatial correlation in regression models, a major focus of attention in spatial econometrics. In this paper, a review and assessment is presented of the application of Rao’s score test against three broad classes of spatial alternatives: spatial autoregressive and...

During the 1960’s, many as was firmly supported by the historical founders of econometrics, had hoped that econometrics would provide a sound scientific foundation for econometrics in which each element of specification would be determined primarily on the basis of economic theory. However, due to misusing of econometrics and also wide usage of the so called cookbook econometrics, many research...

By analyzing scholars’ research on econometrics, we can understand the hot topics of related and, based changes hotspots in different years, derive future application prospects. In this paper, literature to econometrics cnki and web science is selected as sample source, between 2010 2020 analyzed by visualization software citespace for authors, keywords, etc. Through study, it found that spatia...

There is near universal agreement that estimates and inferences from spatial regression models are sensitive to particular specifications used for the spatial weight structure in these models. We find little theoretical basis for this commonly held belief, if estimates and inferences are based on the true partial derivatives for a well-specified spatial regression model. We conclude that this m...

This paper places the key issues and implications of the new ‘introductory’ book on spatial econometrics by James LeSage & Kelley Pace (2009) in a broader perspective: the argument in favour of the spatial Durbin model, the use of indirect effects as a more valid basis for testing whether spatial spillovers are significant, the use of Bayesian posterior model probabilities to determine which sp...

We consider cross-sectional data that exhibit no spatial correlation, but are feared to be spatially dependent. We demonstrate that a spatial version of the stochastic volatility model of …nancial econometrics, entailing a form of spatial autoregression, can explain such behaviour. The parameters are estimated by pseudo Gaussian maximum likelihood based on log-transformed squares, and consisten...