Spatial J-test: some Monte Carlo evidence
Researchers using spatial econometric methods generally assume a known structure for the process being modeled embedded in a spatial weights matrix. The present paper evaluates the performance of the J-test in selecting the most appropriate spatial structure in the context of a Monte Carlo study. Results suggest that the J-test performs well when used to select between different weights matrices. Increases in power are associated with the use of the full set of instruments.
spatial j-test monte carlo simulation spatial data generation spatial statistics