@inbook{dd6d1671347c48b2a57c8f28c53501bb,
title = "TESTING FOR LINEAR AND LOG-LINEAR MODELS AGAINST BOX-COX ALTERNATIVES WITH SPATIAL LAG DEPENDENCE",
abstract = "Baltagi and Li (2001) derived Lagrangian multiplier tests to jointly test for functional form and spatial error correlation. This companion paper derives Lagrangian multiplier tests to jointly test for functional form and spatial lag dependence. In particular, this paper tests for linear or log-linear models with no spatial lag dependence against a more general Box-Cox model with spatial lag dependence. Conditional LM tests are also derived which test for (i) zero spatial lag dependence conditional on an unknown Box-Cox functional form, as well as, (ii) linear or log-linear functional form given spatial lag dependence. In addition, modified Rao-Score tests are also derived that guard against local misspecification. The performance of these tests are investigated using Monte Carlo experiments.",
author = "Baltagi, {Badi H.} and Dong Li",
note = "Funding Information: We thank Kelley Pace and two anonymous referees for their helpful comments and suggestions. Baltagi would like to thank the Private Enterprise Research Center for their support. Li acknowledges financial support from the University Small Research Grant at Kansas State University. ",
year = "2004",
doi = "10.1016/S0731-9053(04)18001-8",
language = "English (US)",
isbn = "0762311487",
series = "Advances in Econometrics",
publisher = "JAI Press",
pages = "35--74",
booktitle = "Spatial and Spatiotemporal Econometrics",
address = "United States",
}