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Spatial Autocorrelation Or Model Misspecification?

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  • Daniel P. McMillen

Abstract

A Monte Carlo experiment illustrates one of the pitfalls of spatial modeling. Specification tests indicate spatial autocorrelation when functional form misspecification is actually the only problem with the model. Incorrect functional forms and omitted variables that are correlated over space produce spurious spatial autocorrelation.

Suggested Citation

  • Daniel P. McMillen, 2003. "Spatial Autocorrelation Or Model Misspecification?," International Regional Science Review, , vol. 26(2), pages 208-217, April.
    • Handle: RePEc:sae:inrsre:v:26:y:2003:i:2:p:208-217
    DOI: 10.1177/0160017602250977
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