2011 Fiscal Year Final Research Report

Experimental and Empirical Investigations on the Spatial Error Model

Research Project

Project/Area Number	21530199
Research Category	Grant-in-Aid for Scientific Research (C)
Allocation Type	Single-year Grants
Section	一般
Research Field	Economic statistics
Research Institution	Nagoya University
Principal Investigator	KATO Takafumi 名古屋大学, 環境学研究科, 准教授 (70233799)
Project Period (FY)	2009 – 2011
Keywords	空間自己相関 / 推定精度 / 予測精度
Research Abstract	A regression model is called a spatial error model when spatial autocorrelation is present in the disturbance. A spatial error model is classified into one of two types on the basis of the method of specification of spatial autocorrelation. The first type is defined using a correlation function, which is a device to specify the autocorrelation in a direct manner, whereas the second type is defined using a weight matrix, which is a device to specify it in an indirect manner. The purpose of the present study is to evaluate the performance of spatial error models using experimental and empirical approaches. As errors cannot be assumed to be absent in any specification, choosing a relatively well-performing model is a good policy in order to allow for such errors. Methodological issues are addressed with regard to both estimation and prediction, and some results are presented that support the combined use of the two types of models.