A comparison study on criteria to select the most adequate weighting matrix

Herrera, M. ; Mur, J. (Universidad de Zaragoza) ; Ruiz, M.

Resumen: The practice of spatial econometrics revolves around a weighting matrix, which is often supplied by the user on previous knowledge. This is the so-called W issue. Probably, the aprioristic approach is not the best solution although, presently, there are few alternatives for the user. Our contribution focuses on the problem of selecting aWmatrix from among a finite set of matrices, all of them considered appropriate for the case. We develop a new and simple method based on the entropy corresponding to the distribution of probability estimated for the data. Other alternatives, which are common in current applied work, are also reviewed. The paper includes a large study of Monte Carlo to calibrate the effectiveness of our approach compared to others. A well-known case study is also included.

Idioma: Inglés

DOI: 10.3390/e21020160

Año: 2019

Publicado en: ENTROPY 21, 2 (2019), 160 [29 pp]
ISSN: 1099-4300

Factor impacto JCR: 2.494 (2019)

Categ. JCR: PHYSICS, MULTIDISCIPLINARY rank: 33 / 85 = 0.388 (2019) - Q2 - T2

Factor impacto SCIMAGO: 0.527 - Electrical and Electronic Engineering (Q2) - Physics and Astronomy (miscellaneous) (Q2) - Information Systems (Q2) - Mathematical Physics (Q3)

Financiación: info:eu-repo/grantAgreement/ES/DGA-FEDER/S37-17R
Financiación: info:eu-repo/grantAgreement/ES/MINECO-FEDER/ECO2015-65637-P

Tipo y forma: Article (Published version)

Área (Departamento): Área Fund. Análisis Económico (Dpto. Análisis Económico)