Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 370969
Title How to get rid of W: a latent variables approach to modelling spatially lagged variables
Author(s) Folmer, H.; Oud, J.
Source Environment and Planning A 40 (2008)10. - ISSN 0308-518X - p. 2526 - 2538.
DOI https://doi.org/10.1068/a4078
Department(s) Economics of Consumers and Households Group
MGS
Publication type Refereed Article in a scientific journal
Publication year 2008
Keyword(s) regression-analysis - weights matrix - econometrics
Abstract In this paper we propose a structural equation model (SEM) with latent variables to model spatial dependence. Rather than using the spatial weights matrix W, we propose to use latent variables to represent spatial dependence and spillover effects, of which the observed spatially lagged variables are indicators. This approach allows us to incorporate and test more information on spatial dependence and offers more flexibility than the representation in terms of Wy or Wx. Furthermore, we adapt the ML estimator included in the software package Mx to estimate SEMs with spatial dependence. We present illustrations based on Anselin¿s Columbus, Ohio, crime dataset.
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