A bivariate marginal likelihood specification of spatial econometric modeling of very large datasets [article]

Giuseppe Arbia
2013 arXiv   pre-print
This paper proposes a bivariate marginal likelihood specification of spatial econometrics models that simplifies the derivation of the log-likelihood and leads to a closed form expression for the estimation of the parameters. With respect to the more traditional specifications of spatial autoregressive models, our method avoids the arbitrariness of the specification of a weight matrix, presents analytical and computational advantages and provides interesting interpretative insights. We
more » ... small sample and asymptotic properties of the estimators and we derive the associated Fisher information matrix needed in confidence interval estimation and hypothesis testing.
arXiv:1301.0741v1 fatcat:dgqvgk4afrhudavo2nzwtthq2a