Testing for spatial correlation under a complete bipartite network

Badi H. Baltagi; Long Liu

doi:10.1016/j.econlet.2024.111839

Testing for spatial correlation under a complete bipartite network

Badi H. Baltagi, Long Liu

Department of Economics

Research output: Contribution to journal › Article › peer-review

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.

Original language	English (US)
Article number	111839
Journal	Economics Letters
Volume	241
DOIs	https://doi.org/10.1016/j.econlet.2024.111839
State	Published - Aug 2024

Keywords

Complete bipartite network
Moran I test
Spatial error model

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.econlet.2024.111839

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title = "Testing for spatial correlation under a complete bipartite network",

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.",

keywords = "Complete bipartite network, Moran I test, Spatial error model",

author = "Baltagi, {Badi H.} and Long Liu",

note = "Publisher Copyright: {\textcopyright} 2024 Elsevier B.V.",

year = "2024",

month = aug,

doi = "10.1016/j.econlet.2024.111839",

language = "English (US)",

volume = "241",

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AU - Baltagi, Badi H.

AU - Liu, Long

PY - 2024/8

Y1 - 2024/8

N2 - 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.

AB - 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.

KW - Complete bipartite network

KW - Moran I test

KW - Spatial error model

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ER -

Testing for spatial correlation under a complete bipartite network

Abstract

Keywords

ASJC Scopus subject areas

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