A comment on 'Specification searches in spatial econometrics: the relevance of Hendry's methodology'
Florax et al. [Florax, R.J.G.M., Folmer, H., Rey, S.J., 2003. Specification searches in spatial econometrics: the relevance of Hendry's methodology. Regional Science and Urban Economics, 33, 557–579] undertook a simulation study designed to assess the properties of various selection strategies...
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| Format: | Journal article |
| Language: | English |
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2006
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| Summary: | Florax et al. [Florax, R.J.G.M., Folmer, H., Rey, S.J., 2003. Specification searches in spatial econometrics: the relevance of Hendry's methodology. Regional Science and Urban Economics, 33, 557–579] undertook a simulation study designed to assess the properties of various selection strategies applied to a spatial modelling problem. Unfortunately, a serious flaw in their experimental design vitiates their main conclusions. A proposal for how to rectify the problem suggests that the opposite conclusion might well result, particularly for more interesting settings than the simple one they considered. |
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