Statistical Inference on the Parametric Component in Partially Linear Spatial Autoregressive Models

Abstract

A statistical test procedure is proposed to check whether the parameters in the parametric component of the partially linear spatial autoregressive models satisfy certain linear constraint conditions, in which a residual-based bootstrap procedure is suggested to derive the p-value of the test. Some simulations are conducted to assess the performance of the test and the results show that the bootstrap approximation to the null distribution of the test statistic is valid and the test is of satisfactory power. Furthermore, a real-world example is given to demonstrate the application of the proposed test.

Keywords:

• Bootstrap
• Local polynomial fitting
• Partially linear spatial autoregressive model
• Profile quasi-maximum likelihood estimation
• Spatial dependence

Mathematics Subject Classification:

• Primary 91B72
• Secondary 62G10