Download This PaperA nonparametric spatial regression model using partitioning estimators
53 Pages Posted: 12 May 2020 Last revised: 19 Dec 2022
Date Written: December 18, 2022
Abstract
This paper extends conventional spatial regression models by modeling the spatial effects of the exogenous regressor model (SLX) as a functional coefficient. This coefficient is estimated by partitioning the domain of the spatial variable into a set of disjoint intervals and approximating the function using local Taylor expansions. We derive the asymptotic properties of the proposed partitioning estimator and construct pointwise and uniform tests for the presence of spatial effects. The empirical application studies environmental Engel curves and nds strong evidence of
neighboring effects in the relationship between households' income and the amount
of pollution embodied in the goods and services they consume.
Keywords: Spatial regression, partitioning estimators, interaction matrix, asymptotic theory, Environmental Engel curves.
JEL Classification: C13, C23, C52
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