Testing for Spatial Correlation under a Complete Bipartite Network

Author(s)/Creator(s)

Badi H. Baltagi, Syracuse UniversityFollow
Long Liu, Florida Atlantic UniversityFollow

Description/Abstract

This note shows that for a spatial regression with a weight matrix depicting a complete bipartite network, the Moran I test for zero spatial correlation is never rejected when the alternative is positive spatial correlation no matter how large the true value of the spatial correlation coefficient. In contrast, the null hypothesis of zero spatial correlation is always rejected (with probability one asymptotically) when the alternative is negative spatial correlation and the true value of the spatial correlation coefficient is near -1.

Document Type

Working Paper

Date

Summer 7-1-2024

Keywords

Spatial Error Model, Moran I Test, Complete Bipartite Network

Language

English

Series

Working Papers Series

Disciplines

Economic Policy | Economics | Public Affairs, Public Policy and Public Administration | Public Policy

ISSN

1525-3066

Additional Information

Working paper no. 264

Recommended Citation

Baltagi, Badi H. and Liu, Long, "Testing for Spatial Correlation under a Complete Bipartite Network" (2024). Center for Policy Research. 489.
https://surface.syr.edu/cpr/489

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.