The Scan-LM to Test Instability in the Constant Coefficient of Spatial Autoregressive Models

oleh: Fernando A. López Hernández, Román Mínguez Salidos

Format: Article
Diterbitkan: Pontificia Universidad Católica del Perú 2021-05-01

Deskripsi

This paper presents a test based on the principle of Lagrange Multipliers to identify spatial instability in the constant coefficient of regression models including substantive spatial dependence. The test has been adapted to the Scan methodology. Its main advantage is that it identifies areas with differential behavior without the need to provide information about their location, shape, or size. The study shows the utility of the test, reconsidering the results obtained by Mur et al.(2008) about instability in the distribution of per capita income in European regions.