[R-sig-Geo] LR1.sarlm specifications

[Amitha Puranik]

Dear Prof. Roger Bivand,

Thank you very much for clarifying my doubt. This helped me a great deal!

















On Thu, Jul 11, 2019 at 12:58 PM Roger Bivand <Roger.Bivand using nhh.no> wrote:

> On Thu, 11 Jul 2019, Amitha Puranik wrote:
>
> > Hi Prof. Roger,
> >
> > I am using the approach proposed by Prof Paul Erhorst for choosing a
> > spatial model in his paper '*Applied spatial econometrics: raising the
> > bar*' . As per the strategy, one has to check the likelihood ratio test
> > for theta (spatial autocorrelation in exogenous (independent) variables)
> > and also in theta+rho*beta (spatial autocorrelation in residuals).
> > Suppose I fit a spatial durbin model and use the code LR1.sarlm(sp.dm),
> > how would I know whether the likelihood ratio test checks for
> > autocorrelation in dependent variable or autocorrelation in the
> > independent variable?
>
> The spatialreg::LR1.sarlm() test simply between the fitted model and the
> same model assuming the spatial coefficients are zero, so it only tests
> the possible benefit of including (a) spatial process(es).
> spatialreg::LR.sarlm() lets you test between nested models, and works like
> lmtest::lrtest(). The models need to be nested, so you can test SDM/SLM,
> SDM/SEM (equivalent to a Common Factor test), and so on, but only if the
> models nest (not SEM/SLM, because they do not nest).
>
> Hope this helps,
>
> Roger
>
> >
> > Thanks in advance.
> > Amitha Puranik.
> >
> >       [[alternative HTML version deleted]]
> >
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> >
>
> --
> Roger Bivand
> Department of Economics, Norwegian School of Economics,
> Helleveien 30, N-5045 Bergen, Norway.
> voice: +47 55 95 93 55; e-mail: Roger.Bivand using nhh.no
> https://orcid.org/0000-0003-2392-6140
> https://scholar.google.no/citations?user=AWeghB0AAAAJ&hl=en
>

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