Practical Proposals for Specifying k-Nearest Neighbours Weights Matrices

Show full item record

Files in this item

Files Size Format View/Open
555_978-952-232-133-6.pdf 232.5Kb PDF View/Open
Use this URL to link or cite this item: http://hdl.handle.net/10138/26530
Title: Practical Proposals for Specifying k-Nearest Neighbours Weights Matrices
Author: Gerkman, Linda; Ahlgren, Niklas
Belongs to series: Working Paper - 555
ISSN: 0357-4598
ISBN: 978-952-232-133-6
Abstract: In this article we introduce and evaluate testing procedures for specifying the number k of nearest neighbours in the weights matrix of spatial econometric models. The spatial J-test is used for specification search. Two testing procedures are suggested: an increasing neighbours testing procedure and a decreasing neighbours testing procedure. Simulations show that the increasing neighbours testing procedures can be used in large samples to determine k. The decreasing neighbours testing procedure is found to have low power, and is not recommended for use in practice. An empirical example involving house price data is provided to show how to use the testing procedures with real data.
URI: http://hdl.handle.net/10138/26530
Date: 2011-06-01
This item appears in the following Collection(s)

Show full item record

Search Helda


Advanced Search

Browse

My Account