Author(s)

Jing Gao¹, Wei Wang²

¹College of Sciences, Shanghai Institute of Technology, Shanghai, China.
²Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China.

We consider LM tests for spatial correlations in the spatial error model (SEM) and spatial autoregressive model (SAM) with randomly missing data in the dependent variable. We derive the formulas of the LM test statistics and provide finite sample performance of the LM tests through Monte Carlo experiments.

LM Test, Spatial Correlations, Missing Data, Dependent Variable

Gao, J. and Wang, W. (2014) Testing for Spatial Correlations with Randomly Missing Observations in the Dependent Variable. Theoretical Economics Letters, 4, 623-633. doi: 10.4236/tel.2014.48079.