<p>Central limit theorems are developed for instrumental variables estimates of linear and semiparametric partly linear regression models for spatial data. General forms of spatial dependence and heterogeneity in explanatory variables and unobservable disturbances are permitted. We discuss estimation of the variance matrix, including estimates that are robust to disturbance heteroscedasticity and/or dependence. A Monte Carlo study of finite-sample performance is included. In an empirical example, the estimates and robust and non-robust standard errors are computed from Indian regional data, following tests for spatial correlation in disturbances, and nonparametric regression fitting. Some final comments discuss modifications and extensions.</p>
Authors
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Peter Robinson
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Supachoke Thawornkaiwong
Working Paper details
- DOI
- 10.1920/wp.cem.2011.0811
- Publisher
- IFS
Suggested citation
Robinson, P and Thawornkaiwong, S. (2011). Statistical inference on regression with spatial dependence. London: IFS. Available at: https://ifs.org.uk/publications/statistical-inference-regression-spatial-dependence (accessed: 3 July 2024).
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