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A Comparison Study on Criteria to Select the Most Adequate Weighting Matrix

Author

Listed:
  • Marcos Herrera

    (CONICET-IELDE/UNSa)

  • Jesus Mur

    (Universidad de Zaragoza)

  • Manuel Ruiz-Marin

    (Universidad Politecnica de Cartagena)

Abstract

The practice of spatial econometrics revolves around a weighting matrix, which is often supplied by the user on previous knowledge. This is the so called W issue and, probably, the aprioristic approach is not the best solution. However, we have to concur that, nowadays, there few alternatives for the user. Under these circumstances, our contribution focuses on the problem of selecting a W matrix from among a finite set of matrices, all of them deemed appropriate for the case. We develop a new and simple method based on the Entropy corresponding to the distribution probability estimated for the data. Other alternatives to ours, which are common in current applied work, are also reviewed. The main part of the paper consists of a large Monte Carlo resolved in order to calibrate the effectiveness of our approach compared to the others. A case study is also included.

Suggested Citation

  • Marcos Herrera & Jesus Mur & Manuel Ruiz-Marin, 2017. "A Comparison Study on Criteria to Select the Most Adequate Weighting Matrix," Working Papers 18, Instituto de Estudios Laborales y del Desarrollo Económico (IELDE) - Universidad Nacional de Salta - Facultad de Ciencias Económicas, Jurídicas y Sociales.
    • Handle: RePEc:slt:wpaper:18
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    References listed on IDEAS

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    Cited by:

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    3. Kai Li & Zhili Ma & Jinjin Liu, 2019. "A New Trend in the Space–Time Distribution of Cultivated Land Occupation for Construction in China and the Impact of Population Urbanization," Sustainability, MDPI, vol. 11(18), pages 1-23, September.
    4. Rubén Ferrer Velasco & Margret Köthke & Melvin Lippe & Sven Günter, 2020. "Scale and context dependency of deforestation drivers: Insights from spatial econometrics in the tropics," PLOS ONE, Public Library of Science, vol. 15(1), pages 1-32, January.
    5. Elżbieta Antczak & Karolina Lewandowska-Gwarda, 2019. "How Fast Is Europe Getting Old? Analysis of Dynamics Applying the Spatial Shift–Share Approach," Sustainability, MDPI, vol. 11(20), pages 1-21, October.

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