This paper suggests a simple test to check if spatial model’s specifications hold for the entire sample period, that is, see model is stable. Our general in it allows possible unknown changes, one or more times, weighting matrix, exogenous variables and/or parameters. These changes may occur cross-sectionally at points time. The also additional endogenous regressors, and error terms are non-par...

Using a new panel cointegration test that considers serial correlation and cross-section dependence on mixed heterogenous sample of Saudi banks, we revisit the cointegrating equation z-score index banking stability. Our results show even when consider dependency errors, there is possibility long-run relationship, which holds in our banks. Furthermore, medium term, found some banks to be integra...