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Identifying nonlinear spatial dependence patterns by using non-parametric tests: Evidence for the European Union

Author

Listed:
  • López-Hernández , Fernando A.

    (Departamento de Métodos Cuantitativos e Informáticos. Facultad de CC de)

  • Artal-Tur, Andrés

    (Departamento de Economía (UPCT))

  • Maté-Sánchez-Val, M. Luz

    (Departamento de Economía Financiera y Contabilidad (UPCT))

Abstract

Accounting for spatial structures in econometric studies is becomingan issue of special interest, given the presence of spatial dependence and spatialheterogeneity problems arising in data. Generally, researchers have been employingparametric tests for detecting spatial dependence structures: Moran’s I and LM testsin spatial regressions are the most popular approaches employed in literature.However,this approach remains misleading in the presence of nonlinear spatial structures,inducing important biases in the estimation of the parameters of the model.In this paper we illustrate that issue by applying three non-parametrical proposalswhen testing for spatial structure in data. Empirical findings for the regions of theEuropean Union show important failures of traditional parametric tests if nonlinearitiescharacterise geo-referenced data. Our results clearly recommend employing newfamilies of tests, beyond parametrical ones, when working in such environments.

Suggested Citation

  • López-Hernández , Fernando A. & Artal-Tur, Andrés & Maté-Sánchez-Val, M. Luz, 2011. "Identifying nonlinear spatial dependence patterns by using non-parametric tests: Evidence for the European Union," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 21, pages 19-36.
    • Handle: RePEc:ris:invreg:0029
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    More about this item

    Keywords

    Nonlinear processes; non-parametric tests; spatial dependence; spatial filters; EU regions;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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