TITLE:
Testing for Spatial Correlations with Randomly Missing Observations in the Dependent Variable
AUTHORS:
Jing Gao, Wei Wang
KEYWORDS:
LM Test, Spatial Correlations, Missing Data, Dependent Variable
JOURNAL NAME:
Theoretical Economics Letters,
Vol.4 No.8,
October
7,
2014
ABSTRACT: 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.