DIAGNOSTICS FOR REGRESSION MODELING IN SPATIAL ECONOMETRICS

This paper describes statistics for model criticism in spatial econome trics. The purpose of these statistics is to evaluate how well a chose n model fits the data and to identify influential cases and how they a ffect the aggregate picture. The paper reviews results in Martin (1992 ) for the regression model with correlated errors where the coefficien ts of the variance matrix are assumed either known or fixed. The probl ems of applying the statistics in spatial econometric modeling are dis cussed. An application is reported which considers diagnostics for the mean function and highlights cases that might influence estimates of the parameter of the error model. Different ways of assessing the infl uence of cases are also described.