Proceedings of the 2014 International Conference on Economic Management and Trade Cooperation

Moran's I Tests for Spatial Dependence in Panel Data Models with Time Varying Spatial Weights Matrices

Authors
Ou Bian-Ling
Corresponding Author
Ou Bian-Ling
Available Online April 2014.
DOI
10.2991/emtc-14.2014.5How to use a DOI?
Keywords
Moran, Time varying spatial weights matrices, Size, Power, Panel data model
Abstract

Moran's I statistic is the most popular test for spatial dependence. When spatial weights matrices are substantially varying over time, Moran's I test based on a time invariant spatial weights matrix may cause substantial bias. This paper first investigates Moran's I tests for spatial dependence in panel data models where spatial weights matrices can be time varying. Based on time varying and time invariant spatial weights matrices, the empirical size and power of Moran's I tests for spatial dependence are evaluated and compared. Monte Carlo results indicate that size of Moran's I tests based on time varying and misspecification of time invariant spatial weights matrices have not significant difference, especially compared with misspecification time invariant spatial weights matrices, power of Moran's I tests for spatial dependence with time varying spatial weights matrices is much higher. TV-Moran tests are superior to NTV-Moran tests with the misspecification of invariant spatial weights matrix, with larger power.

Copyright
© 2014, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2014 International Conference on Economic Management and Trade Cooperation
Series
Advances in Intelligent Systems Research
Publication Date
April 2014
ISBN
10.2991/emtc-14.2014.5
ISSN
1951-6851
DOI
10.2991/emtc-14.2014.5How to use a DOI?
Copyright
© 2014, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Ou Bian-Ling
PY  - 2014/04
DA  - 2014/04
TI  - Moran's I Tests for Spatial Dependence in Panel Data Models with Time Varying Spatial Weights Matrices
BT  - Proceedings of the 2014 International Conference on Economic Management and Trade Cooperation
PB  - Atlantis Press
SP  - 27
EP  - 33
SN  - 1951-6851
UR  - https://doi.org/10.2991/emtc-14.2014.5
DO  - 10.2991/emtc-14.2014.5
ID  - Bian-Ling2014/04
ER  -