In regression analysis, model misspecification can produce spurious spatial correlation in the residuals. By means of Monte Carlo simulations, I show that the RESET test can help to disentangle this conundrum in large samples. Small samples can pose a serious challenge to finding the correct model.

Spatial autocorrelation or model misspecification? The help from RESET and the curse of small samples

VAONA, Andrea
2009-01-01

Abstract

In regression analysis, model misspecification can produce spurious spatial correlation in the residuals. By means of Monte Carlo simulations, I show that the RESET test can help to disentangle this conundrum in large samples. Small samples can pose a serious challenge to finding the correct model.
2009
Spatial autocorrelation; Model misspecification; RESET; Monte Carlo simulations
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/332968
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