Two Special Spatial Weight Matrices and Their Effects on Estimation and Testing in Spatial Regressions

Author(s)/Creator(s)

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

Description/Abstract

This paper collects in one place some of the consequences of using two special spatial weight matrices in the spatial econometrics literature. The two weight matrices considered are the equal weight spatial matrix and the complete bipartite network. In particular, we summarize the effects of these special weight matrices on the statistical properties of commonly used spatial estimators as well as commonly used tests for spatial dependence.

Document Type

Working Paper

Date

3-9-2026

Keywords

Spatial regression, two-stage least squares, Moran test, equal weight matrix, complete bipartite network

Language

English

Series

Working Papers Series

Disciplines

Econometrics | Economics

ISSN

1525-3066

Additional Information

CPR Working Paper No. 287

Recommended Citation

Baltagi, Badi H. and Liu, Long, "Two Special Spatial Weight Matrices and Their Effects on Estimation and Testing in Spatial Regressions" (2026). Center for Policy Research. 525.
https://surface.syr.edu/cpr/525

Creative Commons License

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