article · 2011

Spatial Fixed Effects and Spatial Dependence

Luc Anselin, Daniel Arribas‐Bel, Luc Anselin, Daniel Arribas-bel

Cited by 11Abstract and details only

Abstract

We investigate the common conjecture in applied econometric work that the inclusion of spatial fixed effects in a regression specification re- moves spatial dependence. We demonstrate analytically and by means of a series of simulation experiments how evidence of the removal of spatial autocorrelation by spatial fixed effects may be spurious when the true DGP takes the form of a spatial lag or spatial error dependence. In addition, we also show that only in the special case where the dependence is group-wise, with all observations in the same group as neighbors of each other, do spatial fixed effects correctly remove spatial correlation.

Cite this paper

APA 7

Anselin, L., Arribas‐Bel, D., Anselin, L., & Arribas-bel, D. (2011). Spatial Fixed Effects and Spatial Dependence.

MLA 9

Anselin, Luc, et al. “Spatial Fixed Effects and Spatial Dependence.” 2011.

Chicago

Anselin, Luc, Daniel Arribas‐Bel, Luc Anselin, and Daniel Arribas-bel. 2011. “Spatial Fixed Effects and Spatial Dependence.”

Harvard

Anselin, L. et al. (2011) ‘Spatial Fixed Effects and Spatial Dependence’.

BibTeX

@article{anselin2011spatial,
  title = {{Spatial Fixed Effects and Spatial Dependence}},
  author = {Anselin, Luc and Arribas‐Bel, Daniel and Anselin, Luc and Arribas-bel, Daniel},
  year = {2011}
}

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