2014
DOI: 10.1080/17421772.2014.930167
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Practical Proposals for Specifyingk-Nearest Neighbours Weights Matrices

Abstract: In this article we introduce and evaluate testing procedures for specifying the number k of nearest neighbours in the weights matrix of spatial econometric models. The spatial J-test is used for spec-i…cation search. Two testing procedures are suggested: an increasing neighbours testing procedure and a decreasing neighbours testing procedure. Simulations show that the increasing neighbours testing procedures can be used in large samples to determine k. The decreasing neighbours testing procedure is found to ha… Show more

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Cited by 19 publications
(7 citation statements)
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“…10 LeSage and Pace (2009, p. 175-178) provide theoretical details regarding Bayesian comparison of models based on alternative weight matrices, as well as applied examples. One can also use J−tests proposed by Kelejian and Piras [15] as illustrated in Gerkman and Ahlgren [16].…”
Section: A Re-examination Of Kostov (2010)mentioning
confidence: 99%
“…10 LeSage and Pace (2009, p. 175-178) provide theoretical details regarding Bayesian comparison of models based on alternative weight matrices, as well as applied examples. One can also use J−tests proposed by Kelejian and Piras [15] as illustrated in Gerkman and Ahlgren [16].…”
Section: A Re-examination Of Kostov (2010)mentioning
confidence: 99%
“…A home's own price is excluded from the calculation by setting all values in the matrix diagonal to zero. The optimal specification of spatial weight matrices is an active area of research (Bhattacharjee and Jensen-Butler, 2013;Seya, Yamagata, and Tsutsumi, 2013;Gerkman and Ahlgren, 2014;Qu and Lee, 2015). Stakhovych and Bijmolt (2009) found that in simulated data, where the true data-generating process is known, selecting W using the Akaike information criterion (AIC) could reliably lead to models that accurately estimated regression coefficients.…”
Section: Empirical Methodsmentioning
confidence: 99%
“…The spatial weights matrix W we use in the study is a K nearest neighbors' contiguity matrix, which was a distance-based matrix and could deal with the problem of "isolation" units (Gerkman and Ahlgren, 2014;Lesage and Fischer, 2008;Schneider et al, 2021).…”
Section: Spatial Weights Matrix Constructionmentioning
confidence: 99%