We find the omitted elements of the external environment affect negatively the estimates for other spatial (social) effect parameters. Especially, we notice the overestimation of the random effect variance when the social dependence is omitted and the overestimation of the social interaction effect when the spatial heterogeneity is ignored

Dong, Guanpeng

Harris, Richard

Łaszkiewicz, Edyta

Comparative Economic Research Central and Eastern Europe

English

As is well known, ignoring spatial heterogeneity leads to biased parameter estimates, while omitting the spatial lag of a dependent variable results in biasness and inconsistency (Anselin, 1988). However, the common approach to analysing households’ expenditures is to ignore the potential spatial effects and social dependence. In light of this, the aim of this paper is to examine the consequences of omitting the spatial effects as well as social dependence in households’ expenditures. We use the Household Budget Survey microdata for the year 2011 from which we took households’ expenditures for fruits and vegetables. The effect of ignoring spatial effects and/or social dependence is analysed using four different models obtained by imposing restrictions on the core parameters of the hierarchical spatial autoregressive model (HSAR). Finally, we estimate the HSAR model to demonstrate the existence of spatial effects and social dependence. We find the omitted elements of the external environment affect negatively the estimates for other spatial (social) effect parameters. Especially, we notice the overestimation of the random effect variance when the social dependence is omitted and the overestimation of the social interaction effect when the spatial heterogeneity is ignored

Edyta Łaszkiewicz

Guanpeng Dong

Richard Harris

Directory of Open Access Journals

The Effect Of Omitted Spatial Effects And Social Dependence In The Modelling Of Household Expenditure For Fruits And Vegetables

As is well known, ignoring spatial heterogeneity leads to biased parameter estimates, while omitting the spatial lag of a dependent variable results in biasness and inconsistency (Anselin, 1988). However, the common approach to analysing households' expenditures is to ignore the potential spatial effects and social dependence. In light of this, the aim of this paper is to examine the consequences of omitting the spatial effects as well as social dependence in households' expenditures. We use the Household Budget Survey microdata for the year 2011 from which we took households' expenditures for fruits and vegetables. The effect of ignoring spatial effects and/or social dependence is analysed using four different models obtained by imposing restrictions on the core parameters of the hierarchical spatial autoregressive model (HSAR). Finally, we estimate the HSAR model to demonstrate the existence of spatial effects and social dependence. We find the omitted elements of the external environment affect negatively the estimates for other spatial (social) effect parameters. Especially, we notice the overestimation of the random effect variance when the social dependence is omitted and the overestimation of the social interaction effect when the spatial heterogeneity is ignored

EconStor (ZBW Kiel)

The effect of omitted spatial effects and social dependence in the modelling of household expenditure for fruits and vegetables

Repozytorium Uniwersytetu Łódzkiego (University of Lodz Repository)

As is well known, ignoring spatial heterogeneity leads to biased parameter estimates, while omitting the spatial lag of a dependent variable results in biasness and inconsistency (Anselin, 1988). However, the common approach to analysing households’ expenditures is to ignore the potential spatial effects and social dependence. In light of this, the aim of this paper is to examine the consequences of omitting the spatial effects as well as social dependence in households’ expenditures. We use the Household Budget Survey microdata for the year 2011 from which we took households’ expenditures for fruits and vegetables. The effect of ignoring spatial effects and/or social dependence is analysed using four different models obtained by imposing restrictions on the core parameters of the hierarchical spatial autoregressive model (HSAR). Finally, we estimate the HSAR model to demonstrate the existence of spatial effects and social dependence. We find the omitted elements of the external environment affect negatively the estimates for other spatial (social) effect parameters. Especially, we notice the overestimation of the random effect variance when the social dependence is omitted and the overestimation of the social interaction effect when the spatial heterogeneity is ignored.</jats:p

Crossref

As is well known, ignoring spatial heterogeneity leads to biased parameter estimates, while omitting the spatial lag of a dependent variable results in biasness and inconsistency (Anselin, 1988). However, the common approach to analysing households’ expenditures is to ignore the potential spatial effects and social dependence. In light of this, the aim of this paper is to examine the consequences of omitting the spatial effects as well as social dependence in households’ expenditures. 
				We use the Household Budget Survey microdata for the year 2011 from which we took households’ expenditures for fruits and vegetables. The effect of ignoring spatial effects and/or social dependence is analysed using four different models obtained by imposing restrictions on the core parameters of the hierarchical spatial autoregressive model (HSAR). Finally, we estimate the HSAR model to demonstrate the existence of spatial effects and social dependence. 
				We find the omitted elements of the external environment affect negatively the estimates for other spatial (social) effect parameters. Especially, we notice the overestimation of the random effect variance when the social dependence is omitted and the overestimation of the social interaction effect when the spatial heterogeneity is ignored

Biblioteka Nauki - repozytorium artykuÅÃ³w

As is well known, ignoring spatial heterogeneity leads to biased parameter estimates, while omitting the spatial lag of a dependent variable results in biasness and inconsistency (Anselin, 1988). However, the common approach to analysing households’ expenditures is to ignore the potential spatial effects and social dependence. In light of this, the aim of this paper is to examine the consequences of omitting the spatial effects as well as social dependence in households’ expenditures.We use the Household Budget Survey microdata for the year 2011 from which we took households’ expenditures for fruits and vegetables. The effect of ignoring spatial effects and/or social dependence is analysed using four different models obtained by imposing restrictions on the core parameters of the hierarchical spatial autoregressive model (HSAR). Finally, we estimate the HSAR model to demonstrate the existence of spatial effects and social dependence.We find the omitted elements of the external environment affect negatively the estimates for other spatial (social) effect parameters. Especially, we notice the overestimation of the random effect variance when the social dependence is omitted and the overestimation of the social interaction effect when the spatial heterogeneity is ignored

Harris, Richard J

Explore Bristol Research

http://dspace.uni.lodz.pl:8080/xmlui/bitstream/11089/8424/1/cer-2014-0038.pdf

The Effect Of Omitted Spatial Effects And Social Dependence In The Modelling Of Household Expenditure For Fruits And Vegetables

Abstract

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Directory of Open Access Journals

EconStor (ZBW Kiel)

Repozytorium Uniwersytetu Łódzkiego (University of Lodz Repository)

Crossref

Biblioteka Nauki - repozytorium artykuÅÃ³w

Explore Bristol Research

The Effect Of Omitted Spatial Effects And Social Dependence In The Modelling Of Household Expenditure For Fruits And Vegetables

Abstract

Similar works

Full text

Available Versions

Directory of Open Access Journals

EconStor (ZBW Kiel)

Repozytorium Uniwersytetu Łódzkiego (University of Lodz Repository)

Crossref

Biblioteka Nauki - repozytorium artykuÅÃ³w

Explore Bristol Research

Biblioteka Nauki - repozytorium artykuÅÃ³w